US Navy awards $6.75 billion contract to General Dynamics NASSCO for eight tankers to replenish the fleet
The US Navy has awarded a $6.75 billion order to shipbuilder General Dynamics NASSCO for eight John Lewis-class fleet replenishment tankers (TAO-205).
As the US Navy seeks to reduce costs and improve efficiencies in shipbuilding and repair programs, it believes a “bulk buy” approach will help achieve savings of approximately $491 million compared to total projected spending on advancing shipbuilding construction plans through annual contracts.
Nicholas H. Guertin, the US Navy’s undersecretary for research, development and acquisition, said bulk buying of T-AOs will help more players enter the sector while increasing capacity and capacity in the short term.
The multi-million dollar award demonstrates innovation in building and sustaining its maritime sector and provides a significant investment in sustaining the shipbuilding industrial base.
It also includes a Shipbuilding Capacity Maintenance Agreement with NASSCO that will strengthen the shipbuilding base by incentivizing shipbuilders to secure new private sector jobs and lowering the U.S. Navy’s business costs.
John Lighthammer, Program Director, Special Mission and Auxiliary Shipbuilding Program Office, Program Executive Office (PEO), Ships, added that the partnership between NASSCO and the U.S. Navy, which relies on the NASSCO shipbuilding team and its suppliers to build and construct the ships for delivery, is critical.
Operated by the Military Sealift Command, the T-AO Fleet Replenishment Tankers serve as the Navy’s primary fuel pipeline from replenishment ports to docked ships. They replenish bulk petroleum products, dry cargo, breakbulk, mail, fleet transportation, and more.
