General Dynamics NASSCO has signed a $6.75-billion agreement with the US Navy to construct additional replenishment oiler vessels.
Under the deal, the company will build eight John Lewis-class ships, in addition to the nine already ordered in 2016, 2022, and 2023.
The so-called auxiliary vessels will provide fuel to other ships, allowing them to remain at sea and combat-ready for extended periods.
Each oiler has a full load displacement of 49,850 tons and the capacity to carry 162,000 barrels of oil.
Most of the work for the contract will be performed in California, with an estimated completion date of January 2035.
The navy is expected to award a contract for three more replenishment ships to complete a fleet of 20.
General Dynamics NASSCO delivered the first ship in the class in July 2022 and is currently constructing two more.
‘Block Buy’ Method
According to a Pentagon announcement, the multibillion-dollar deal follows the “block buy” method, which is intended to save costs and streamline the procurement process.
The US Navy anticipates saving up to $491 million with the bulk order compared to awarding annual contracts.
The contract also includes a shipbuilding capability preservation agreement, which encourages shipbuilders to seek commercial work and helps reduce the navy’s expenses.
“We are pleased to continue building these ships, with seventeen of the Navy’s twenty-ship program of record now on contract…” General Dynamics NASSCO President Dave Carver said.
“The NASSCO team is honored to continue working with our Navy customer and thankful for their unwavering support.”