Navy Awards $600M in Ship Material Procurement Funds to General Dynamics NASSCO

A General Dynamics (NYSE: GD) subsidiary has received $600 million in two contract modification awards from the U.S. Navy for long-lead-time material required by the service branch’s replenishment oiler and sea platform ships.

The first award to General Dynamics NASSCO is worth $500 million and covers equipment for the Navy’s T-AO 211 and 212 oilers while the second amounts to $100 million and provides for Expeditionary Sea Base 8 components, the Department of Defense said Tuesday.

Nearly half of oiler-related work will be conducted in Iron Mountain, Michigan, and San Diego, California. It will run through June 2027.

The second award, on the other hand, will require the shipbuilder to perform 73 percent of ESB 8 work in Pittsburgh, Pennsylvania; Beloit, Wisconsin; and San Diego, California, until March 2026.

The Naval Sea Systems Command will use the Navy shipbuilding and conversion budget to fund the contract modifications. It will obligate the total amount at the time of award.

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