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General Dynamics NASSCO Books $736M Navy Contract Option to Build Additional Fleet Oiler

General Dynamics‘ (NYSE: GD) NASSCO subsidiary will build an additional fleet replenishment oiler for the U.S. Navy’s John Lewis class under a $736.2 million contract option, the Department of Defense said Monday.

The service branch exercised the option to procure T-AO 213 design and construction services, as part of a $1.62 million award announced in August 2022.

Naval Sea Systems Command acted as the contracting activity and will obligate the full amount of the option using the branch’s fiscal 2023 shipbuilding and conversion funds.

Work will occur in California, Michigan, Virginia, Wisconsin, California, Pennsylvania, Massachusetts, Mexico and other locations through March 2028.

The Navy’s T-AO ships are designed to help sailors transfer fuel to carrier strike groups while at sea, carry 162,000 barrels of oil and travel at a speed of 20 knots, according to NASSCO.

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