General Dynamics unit wins $1.7B to build Navy vessels

General Dynamics NASSCO, a business unit of Reston-based Fortune 100 aerospace and defense contractor General Dynamics, announced Monday it has been awarded $1.7 billion in funding from the U.S. Navy for the construction of T-AO 215 and T-AO 216 vessels.

The company states that the ships are part of an up to $6.75 billion multi-ship procurement contract with the Navy to construct up to eight additional John Lewis-class fleet replenishment oilers, designated T-AO 214 through 221.

“The T-AO program holds significant importance to the men and women of NASSCO and is one we take great pride in — it’s the longest running Navy production series in NASSCO history,” Dave Carver, president of General Dynamics NASSCO, said in a statement. “The timely funding for these two ships will act to stabilize the workforce by sustaining an important backlog and prevent future layoffs.”

NASSCO is currently under contract to build 17 of the Navy’s 20-ship program of record. So far, it has delivered four. The work began in 2016, when the Navy awarded NASSCO a contract to design and build the first six ships in the John Lewis-class. General Dynamics stated that the contract was modified in 2022 to include three additional oilers (T-AO 211-213). In 2024, the business unit received the contract to build eight more ships.

The John Lewis class of ships are 742-foot vessels that have a full load displacement of 49,850 tons, capacity to carry 162,000 barrels of oil and significant amounts of dry cargo. Designed to transfer fuel to Navy ships operating at sea, the vessels can travel at speeds of up to 20 knots.

Headquartered in San Diego, General Dynamics NASSCO specializes in the design and construction of Navy and commercial ships. The aerospace and defense contractor bought NASSCO Holdings, the National Steel and Shipbuilding Co.’s parent company, in 1998.

The company did not immediately return requests for comment.

General Dynamics has approximately 117,000 employees worldwide and reported $47.7 billion in revenue for 2024. It ranked No. 96 on the 2025 Fortune 1000.