General Dynamics NASSCO Awarded $600 Million to Support Construction of Three U.S. Navy Ships

Rhea-AI Summary

General Dynamics NASSCO, a subsidiary of General Dynamics (NYSE: GD), has been awarded $600 million in contract modifications from the U.S. Navy. This funding will support the construction of T-AO 211, T-AO 212, and ESB 8 ships. Of the total, $500 million is allocated for the T-AO ships and $100 million for ESB 8. Construction is expected to commence in Q3 2023 and continue through 2027, strengthening the San Diego workforce. General Dynamics NASSCO specializes in ship design and construction, contributing significantly to the U.S. Navy's capabilities.

Positive

• Award of $600 million in U.S. Navy contract modifications.
• Strengthens workforce in San Diego with construction beginning in Q3 2023.
• Supports critical naval programs with T-AO 211, T-AO 212, and ESB 8.

Negative

• None.

Contract modifications provide for T-AO 211, T-AO 212 and ESB 8

SAN DIEGO, June 29, 2022 /PRNewswire/ -- General Dynamics NASSCO, a subsidiary of General Dynamics (NYSE: GD), announced today that it was awarded $600 million in U.S. Navy contract modifications for long-lead-time material to support construction of the seventh and eighth ships in the John Lewis-class fleet oiler (T-AO) program, as well as the sixth ship in the Expeditionary Sea Base (ESB) program.

"NASSCO shipbuilders are honored to build T-AO 211, T-AO 212 and ESB 8," said Dave Carver, president of General Dynamics NASSCO. "The NASSCO team is excited to work with our Navy partners to ensure the success of both historic programs which are critical in supporting the Navy's forward presence."

The contract modifications for long-lead-time material provide $500 million for T-AO 211 and 212, and $100 million for ESB 8.

Construction is scheduled to begin in the third quarter of 2023 and continue into 2027, providing the opportunity to sustain and grow the workforce along San Diego's working waterfront. NASSCO's unique location in San Diego Bay provides shipbuilders and skilled tradespeople with access to the nation's leading maritime support businesses, and highly trained employees allow NASSCO to build and repair Navy ships in an efficient manner.

In 2011, the Navy awarded NASSCO with a contract to design and build the first two ships in the newly created Mobile Landing Platform (MLP) program, the USNS Montford Point and USNS John Glenn. The program evolved, adding the USS Lewis B. Puller, USS Hershel "Woody" Williams and the USS Miguel Keith, USNS John L. Canley and the USNS Robert E. Simanek (ESB 7), configured and renamed as ESBs. ESBs are highly flexible platforms designed to support multiple maritime-based missions, including Air Mine Counter Measures (AMCM), Special Operations Forces (SOF) and limited crisis response. Acting as a mobile sea base, the 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. Following the delivery of the first five ships to the U.S. Navy, the sixth ship, the USNS John L. Canley, was christened on June 25. The USNS Robert E. Simanek (ESB 7), the seventh ship, is 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 (T-AO 205), previously known as the TAO(X). Designed to transfer fuel to U.S. Navy carrier strike group ships operating at sea, the 742-feet vessels have a full load displacement of 49,850 tons, with the capacity to carry 157,000 barrels of oil, a significant dry cargo capacity, aviation capability and up to a speed of 20 knots. The first ship, the future USNS John Lewis (T-AO 205), is scheduled for delivery later this year. The future USNS Harvey Milk (T-AO 206), the future USNS Earl Warren (T-AO 207), and the future 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; 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 significance of the $600 million contract awarded to General Dynamics NASSCO?

The $600 million contract awarded to General Dynamics NASSCO is significant as it funds the construction of three important Navy ships, enhancing military capabilities.

When will the construction of T-AO 211, T-AO 212, and ESB 8 begin?

Construction of T-AO 211, T-AO 212, and ESB 8 is scheduled to begin in the third quarter of 2023.

How much funding is allocated for each type of ship in the recent contract?

The contract allocates $500 million for T-AO 211 and T-AO 212, and $100 million for ESB 8.

What impact does the contract have on the workforce in San Diego?

The contract is expected to sustain and grow the workforce along San Diego's waterfront as construction progresses.

Which company received the contract for the construction of Navy ships?

The contract for the construction of Navy ships was awarded to General Dynamics NASSCO.