U.S Navy Awards $6.75 Billion Contract to General Dynamics NASSCO for 8 Fleet Replenishment Oilers

The U.S Navy has given a $6.75 billion order to Shipbuilder General Dynamics NASSCO for 8 John Lewis Class (TAO-205) Fleet Replenishment Oilers.

Since the U.S Navy has been trying to decrease costs and boost efficiency in its shipbuilding and repair programs, it believes the ‘Block Buy’ method will aid in unlocking savings of around 491 million dollars compared to the total estimated expense of going forward with the building program through annual contracts.

Nickolas H. Guertin, Assistant Secretary of the U.S Navy for Research, Development and Acquisition said that the T-AO block buy will help get more players on the field while increasing close-term capability and capacity.

The multi-billion dollar award shows innovation to construct and maintain their maritime dominance and enable important investments to sustain the shipbuilding industrial foundation.

It also includes a Shipbuilding Capability Preservation Agreement with NASSCO which would strengthen the shipbuilding base by offering incentives for shipbuilders to get new private sector works and reduce the U.S Navy’s expenses of conducting business.

John Lighthammer, program manager, Auxiliary and Special Mission Shipbuilding Program Office, Program Executive Office (PEO) Ships, added that the partnership between NASSCO and the U.S Navy is vital and the latter depends on the shipbuilding team at NASSCO and their suppliers to build and deliver the ships.

T-AO Fleet Replenishment Oilers are operated by the Military Sealift Command and function as the Navy’s main fuel pipeline from resupply ports to station vessels, offering replenishment of bulk petroleum products, dry stores, packaged cargo, mail, fleet freight etc.

References: Navy.mil, Inside Defense

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