General Dynamics Wins US Navy’s $3.1 Billion Worth Fleet Replenishment Oiler Ships Contract

General Dynamics is being awarded contract for the detail design and construction of six T-AO 205 Class Fleet Replenishment Oilers (lead ship in fiscal 2016 and, if appropriated, one follow ship per year from fiscal 2018 to fiscal 2022).

The award amount of this contract is $640 million for the lead ship. This contract includes line items for five follow ships, and options for special studies, engineering and industrial services, provisioned items orders, LX(R) contract design support, cost reduction and implementation, other direct costs, and special incentives that, if funding is made available for all ships and all options are exercised/authorized, would bring the cumulative value of this contract to $3.15 billion.

Work for the lead ship is expected to be completed by July 2020 and work for the follow ships is expected to complete by July 2025.  Fiscal 2016 shipbuilding and conversion (Navy) funding in the amount of $640 million will be obligated at time of award, and will not expire at the end of the current fiscal year.