General Dynamics NASSCO Gets $1.63B Navy Expeditionary Sea Base Contract Modification

A General Dynamics (NYSE: GD) NASSCO subsidiary has secured a potential $1.63B contract modification to build and design the sixth and seventh Expeditionary Sea Base ships for the U.S. Navy. The fixed-price-incentive modification awarded to General Dynamics NASSCO has a base value of $1.08B for the construction of the two ships and an option for the ESB 8 ship, General Dynamics said Friday.

“We are pleased to be building ESB 6 and 7 for our Navy,” said Kevin Graney, president of General Dynamics NASSCO. “ESBs have proven to be affordable and flexible, and as the fleet has gained experience with the platform, we have worked with the Navy and Marines to develop even more capabilities and mission sets.”

General Dynamics NASSCO is set to begin construction of the two ships in the first quarter of 2020 and continue work through the second quarter of 2023. The Department of Defense said the work will primarily occur in San Diego as well as in Pittsburgh, Wisconsin, Virginia and Mexico through January 2025.

Naval Sea Systems Command will obligate $1B in fiscal 2018 and 2019 shipbuilding and conversion funds at the time of award. An ESB supports the Navy’s airborne mine countermeasures mission, special warfare and the U.S. Marine Corps’ task organized units. It has a helicopter flight deck and can accommodate up to 250 personnel.

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