The U.S. Navy on Friday announced it has placed a $6.75 billion order with San Diego shipbuilder General Dynamics NASSCO for up to eight John Lewis Class (TAO-205) Fleet Replenishment Oilers.
The Navy, which has been looking for ways to reduce costs and increase efficiency across its shipbuilding and repair programs, said it expects the “block buy” approach will unlock savings of $491 million compared to the total anticipated costs of carrying out the build 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…