General Dynamics NASSCO Receives Additional Eight-Ship Contract to Build T-AO 10-17
General Dynamics NASSCO, a subsidiary of General Dynamics (NYSE: GD), has secured a block-buy contract from the U.S. Navy for up to eight additional John Lewis-class fleet replenishment oilers (T-AO 214 through 221).
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General Dynamics NASSCO, a subsidiary of General Dynamics (NYSE: GD), has secured a block-buy contract from the U.S. Navy for up to eight additional John Lewis-class fleet replenishment oilers (T-AO 214 through 221). The initial ship under this new contract is valued at $780 million, with the potential total contract value exceeding $6.7 billion if all eight ships are exercised. This award brings NASSCO's share to 17 out of the Navy's 20-ship program of record, making it the longest Navy production series in NASSCO history.
The 742-feet vessels, designed to transfer fuel to U.S. Navy ships at sea, have a full load displacement of 49,850 tons and can carry 162,000 barrels of oil. NASSCO has already delivered three ships, with more currently under construction. The company's president, Dave Carver, expressed gratitude for the Navy's continued support and the opportunity to build these essential vessels.
Positive
- Secured contract for up to 8 additional ships, potentially worth over $6.7 billion
- Initial ship under new contract valued at $780 million
- Now building 17 out of Navy's 20-ship program, longest production series in NASSCO history
- Demonstrates strong, ongoing relationship with U.S. Navy
- Provides long-term revenue stream and production stability
Negative
- None.
Details
News Market Reaction – GD
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NASSCO is currently under contract for the first nine ships of the class, and has delivered three to date. With this award the company will build seventeen of the Navy's twenty-ship program of record.
"We are pleased to continue building these ships, with seventeen of the Navy's twenty-ship program of record now on contract. This will make the T-AO program the longest Navy production series in NASSCO history," said Dave Carver, president of General Dynamics NASSCO. "The NASSCO team is honored to continue working with our Navy customer and thankful for their unwavering support."
In 2016, the Navy awarded NASSCO with a contract to design and build the first six ships in the next generation of fleet oilers, the John Lewis-class. In 2022, that contract was modified to add an additional three oilers (T-AO 211 – 213). Designed to transfer fuel to
The first ship, USNS John Lewis (T-AO 205), was delivered to the
General Dynamics NASSCO specializes in the design and construction of Navy and commercial ships and is a major provider of repair services for the
General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated
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SOURCE General Dynamics NASSCO
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