Maine’s Bath Iron Works and two other shipyards have been given the green light to proceed with design work on an offshore patrol cutter for the U.S. Coast Guard.

Two other shipbuilders protested the fixed-cost contract that went to Bath Iron Works, Bollinger Shipyards in Louisiana and Eastern Shipbuilding in Florida. But the Coast Guard announced Wednesday that its decision was upheld by the Government Accountability Office.

The Coast Guard hopes to build new ships to replace its aging fleet of 210-foot and 270-foot cutters.

The process came to a halt when protests were filed in February. The contract now calls for work to start July 1, with an 18-month window to complete the work, Bath Iron Works spokesman Matt Wickenheiser said.

Bath Iron Works, a General Dynamics subsidiary, wants to expand beyond Navy work. It previously bid on other Coast Guard cutters and a high-speed vessel for the Army and Marines, but other companies won those contracts.

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