The U.S. Navy on Friday introduced it has positioned a $6.75 billion order with San Diego shipbuilder Basic Dynamics NASSCO for as much as eight John Lewis Class (TAO-205) Fleet Replenishment Oilers.
The Navy, which has been on the lookout for methods to cut back prices and improve effectivity throughout its shipbuilding and restore applications, mentioned it expects the “block purchase” method will unlock financial savings of $491 million in comparison with the full anticipated prices of finishing up the construct program by means of annual contracts.
“This T-AO block purchase delivers on the Division of Navy’s dedication to get extra gamers on the sphere whereas rising near-term functionality and capability,” mentioned Nickolas H. Guertin, Assistant Secretary of the Navy for Analysis, Improvement and Acquisition (ASN RD&A). “This multi-billion greenback award displays innovation to construct and maintain our maritime dominance and permits for essential funding and sustainment of our shipbuilding industrial base.”
This award features a Shipbuilding Functionality Preservation Settlement with NASSCO that broadens and strengthens the shipbuilding industrial base by offering an incentive for a shipbuilder to acquire new personal sector work, thereby lowering the Navy’s price of doing enterprise. This strengthening of the commercial base is aligned with the Secretary of the Navy’s Maritime Statecraft initiative.
“This block purchase contract will present functionality for our fleet whereas offering price financial savings to the Navy and stability for the shipbuilding industrial base,” mentioned John Lighthammer, program supervisor, Auxiliary and Particular Mission Shipbuilding Program Workplace, Program Govt Workplace (PEO) Ships. “The partnership between the Navy and NASSCO is vital and we depend on the shipbuilding workforce at NASSCO and their many distributors and suppliers to assemble and ship these ships.”
Operated by the Army Sealift Command (MSC), T-AO Fleet Replenishment Oilers function the Navy’s major gasoline pipeline from resupply ports to station ships, offering replenishment of bulk petroleum product, dry shops/packaged cargo, fleet freight, mail and personnel to combatants and assist forces at sea.
