U.S. Navy Awards General Dynamics Contract For Eight Oil Tankers

The Navy awarded a $6.75 billion block buy contract to General Dynamics NASSCO for the procurement of up to eight John Lewis Class (TAO-205) Fleet Replenishment Oilers, Sept. 13.

By using the block buy approach the Navy expects savings of $491 million as compared to the total anticipated costs of carrying out the program through annual contracts.

This T-AO block buy delivers on the Department of Navy’s commitment to get more players on the field while growing near-term capability and capacity,” said Nickolas H. Guertin, Assistant Secretary of the Navy for Research, Development and Acquisition (ASN RD&A). “This multi-billion dollar award reflects innovation to build and sustain our maritime dominance and allows for critical investment and sustainment of our shipbuilding industrial base.

This award includes a Shipbuilding Capability Preservation Agreement with NASSCO that broadens and strengthens the shipbuilding industrial base by providing an incentive for a shipbuilder to obtain new private sector work, thereby reducing the Navy’s cost of doing business.  This strengthening of the industrial base is aligned with the Secretary of the Navy’s Maritime Statecraft initiative.
 

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