General Dynamics NASSCO Awarded $1.4 Billion to Build U.S. Navy Ships

Rhea-AI Summary

General Dynamics NASSCO has secured $1.4 billion in U.S. Navy contract modifications for constructing a sixth Expeditionary Sea Base ship (ESB 8) and two fleet oilers (T-AO 211 and T-AO 212). This funding complements an earlier $600 million for long-lead materials, bringing total potential contract value to $2.7 billion. Construction will start in Q3 2023 and extend until 2027. This initiative enhances the Navy's capabilities and ensures sustained growth for General Dynamics NASSCO's workforce, as stated by President Dave Carver.

Positive

• Secured $1.4 billion in contract modifications, enhancing revenue stream.
• Total potential contract value reaches $2.7 billion, indicating strong future prospects.
• Construction scheduled to provide sustained growth for workforce.

Negative

• None.

Contract modifications provide full funding for three ships – ESB 8, T-AO 211, and T-AO 212; and an option to build T-AO 213

SAN DIEGO, Aug. 5, 2022 /PRNewswire/ -- General Dynamics NASSCO, a subsidiary of General Dynamics (NYSE: GD), announced today that it received $1.4 billion in U.S. Navy contract modifications for construction of a sixth Expeditionary Sea Base ship (ESB 8) and two additional John Lewis-class fleet oilers (T-AO 211 and 212). This award comes in addition to $600 million already received to procure long-lead time materials for the same ships. The contract modification also provides an option for the Navy to procure an additional oiler, T-AO 213, bringing the total potential value to $2.7 billion for the four ships.

"NASSCO is committed to working together with the Navy to deliver these much needed ships to the fleet," said Dave Carver, President of General Dynamics NASSCO. "As partners with the Navy, we remain dedicated to ensuring the success of both of these programs to help enhance and expand the Navy's forward presence and warfighting capabilities while providing sustained growth for our workforce."

Construction of the four ships is scheduled to begin in the third quarter of 2023 and continue into 2027.

In 2011, the Navy awarded NASSCO with a contract to design and build the first two ships in the newly created Mobile Landing Platform program, USNS Montford Point and USNS John Glenn. The program evolved, adding USS Lewis B. Puller (ESB 3), USS Hershel "Woody" Williams (ESB 4), USS Miguel Keith (ESB 5), the future USS John L. Canley (ESB 6) and the future USS Robert E. Simanek (ESB 7), configured as ESBs. ESB ships are highly flexible platforms designed to support multiple maritime-based missions, including Air Mine Counter Measures, Special Operations Forces, and limited crisis response. Acting as a mobile sea base, this 784-foot ship has a 52,000 square-foot flight deck to support MH-53, MH-60, MV-22 tilt-rotor, and H1 aircraft operations. The future USS John L. Canley (ESB 6) and USS Robert E. Simanek (ESB 7) are currently under construction. 

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. Designed to transfer fuel to U.S. Navy ships operating at sea, the 742-feet vessels have a full load displacement of 49,850 tons, capacity to carry 157,000 barrels of oil and significant amounts of dry cargo, as well as providing aviation capability while traveling at speeds up to 20 knots. The first ship, USNS John Lewis (T-AO 205), was delivered to the U.S. Navy in July 2022. The USNS Harvey Milk (T-AO 206), USNS Earl Warren (T-AO 207), and USNS Robert F. Kennedy (T-AO 208) are currently under construction.

General Dynamics NASSCO specializes in the design and construction of Navy and commercial ships and is a major provider of repair services for the U.S. Navy, with capabilities in San Diego, California; Norfolk, Virginia; Mayport, Florida; and Bremerton, Washington. More information about General Dynamics NASSCO is available at www.nassco.com.

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 $38.5 billion in revenue in 2021. More information about General Dynamics is available at www.gd.com.

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SOURCE General Dynamics NASSCO

FAQ

What is the total potential value of the new Navy contracts for General Dynamics (GD)?

The total potential value of the new Navy contracts for General Dynamics is $2.7 billion.

When is the construction of the new ships scheduled to begin?

Construction of the new ships is scheduled to begin in the third quarter of 2023.

How much funding did General Dynamics NASSCO receive for the contract modifications?

General Dynamics NASSCO received $1.4 billion in contract modifications.

What types of ships are included in the contract modifications for General Dynamics (GD)?

The contract modifications include a sixth Expeditionary Sea Base ship (ESB 8) and two fleet oilers (T-AO 211 and T-AO 212).