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NASSCO Secures $856 Million for Navy Fleet Oiler
May 15, 20262 min readgCaptain

NASSCO Secures $856 Million for Navy Fleet Oiler

The U.S. Navy has awarded General Dynamics NASSCO a $856 million funding package to build the latest ship, T-AO 217, in its John Lewis-class fleet replenishment oiler program. This contract is part of an eight-ship block-buy agreement covering vessels T-AO 214 through T-AO 221.

The San Diego-based shipbuilder has already secured contracts for 17 out of the Navy's planned 20 oilers and has delivered five ships to date. The funding will help maintain a steady workforce at NASSCO's yard, mitigating the risk of future layoffs.

Dave Carver, president of General Dynamics NASSCO, stated that the T-AO program is a cornerstone fixture for his team, representing the longest-standing Navy production series in their history.

The John Lewis-class oilers are designed to refuel U.S. Navy ships at sea, extending the reach of carrier strike groups and other deployed forces. These 742-foot vessels have a full-load displacement of 49,850 tons, capacity for 162,000 barrels of oil, and speeds of up to 20 knots.

The Navy first awarded NASSCO the contract to design and build the first six John Lewis-class oilers in 2016. The contract was expanded in 2022 to add three more ships, followed by the 2024 block buy for up to eight additional vessels.

Five John Lewis-class oilers have been delivered, with five more under construction at NASSCO's San Diego yard. This demonstrates the company's ability to meet the Navy's production needs.

The T-AO program is a crucial component of the Navy's operations, enabling it to sustain its fleet and maintain its global presence.

General Dynamics NASSCO's success in this program highlights the importance of investing in domestic shipbuilding capabilities.

However, the company faces challenges in maintaining timely funding for future projects, which could impact production continuity at the yard.

The Navy's John Lewis-class oiler program is a testament to its commitment to modernizing its fleet and ensuring the security of its forces.

EazyInWay Expert Take

The T-AO program is crucial for the Navy's operations at sea.

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Source: gCaptain

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