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General Dynamics NASSCO receives additional oiler tanker contract from Navy

The block buy contract with the subsidiary of General Dynamics could total $6.7 billion if the option to construct all the fleet replenishment oilers is exercised.
Credit: General Dynamics

SAN DIEGO — San Diego-based General Dynamics NASSCO Friday received a contract from the U.S. Navy for construction of up to eight additional John Lewis-class oil tankers.

The block buy contract with the subsidiary of General Dynamics could total $6.7 billion if the option to construct all the fleet replenishment oilers is exercised, along with incentives and certain contract options. The 10th through NASSCO and the first under Friday's contract has been awarded for $780 million.

"We are pleased to continue building these ships, with 17 of the Navy's 20-ship program of record now on contract. This will make the T-AO program the longest Navy production series in NASSCO history," said Dave Carver, president of General Dynamics NASSCO. "The NASSCO team is honored to continue working with our Navy customer and thankful for their unwavering support."

General Dynamics NASSCO specializes in design and construction of Navy and commercial ships and provides repair services for the U.S. Navy, with shipyards in San Diego; Norfolk, Virginia; Mayport, Florida; and Bremerton, Washington.

According to the Navy, by using the block buy approach, it expects to save $491 million over annual contracts.

"This T-AO block buy delivers on the Department of the 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. "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."

NASSCO first earned a contract from the Navy to design and build the first six ships in a new generation of fleet oilers in 2016. That contract was modified in 2022 to add an additional three.

These ships are 742 feet long, displace 49,850 tons and have the capacity for 162,000 barrels of oil while transferring fuel to Navy ships while at sea.

"This block buy contract will provide capability for our fleet while providing cost savings to the Navy and stability for the shipbuilding industrial base," said John Lighthammer, program manager at the Auxiliary and Special Mission Shipbuilding Program Office. "The partnership between the Navy and NASSCO is important and we rely on the shipbuilding workforce at NASSCO and their many vendors and suppliers to construct and deliver these ships."

The first ship in the class, USNS John Lewis, was delivered to the U.S. Navy in July 2022, named after the late civil rights leader and Congressman. The USNS Sojourner Truth and the USNS Thurgood Marshall are under construction, while the USNS Lucy Stone will be christened and launched on Sept. 21. Work on the USNS Ruth Bader Ginsburg will begin in October.

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