The Navy has awarded two key contracts associated to its future amphibious operations and replenishment capabilities that if absolutely exercised may very well be price a mixed $6.3 billion.

The first contract was awarded to General Dynamics NASSCO for the element design and building of six T-AO 205 Class Fleet Replenishment Oilers. The contract quantity is $640,206,756 for the lead ship in 2016 and, if appropriated, contains choices for 5 follow-on ships between FY 2018 and FY 2022. The contract is a part of the Navy’s John Lewis (TAO-205) class oiler shipbuilding program to construct a brand new class of up 17 fleet oilers for the Navy.

The second contract was awarded to Huntington Ingalls for the planning of the LHA 8 amphibious assault ship. The $272,467,161 contract contains the Advanced Engineering and Procurement of Long Lead Time Material with choices for element design and building and the related help efforts.

The contracts have been awarded following a restricted competitors involving simply NASSCO and Huntington Ingalls, the solely two shipbuilders with the functionality to construct each ship sorts, the place one could be awarded the primary six TAO-205s and the opposite the LHA 8s. 

The Navy stated that ought to all choices be exercised the cumulative worth of the contracts would quantity to $3,156,828,444 and $3,133,852,637 to NASSCO and Ingalls, respectively.

“This strategy reinforces the Navy’s commitment to a culture of affordability that emphasizes competition while maintaining our critical shipbuilding industrial base,” stated Jay Stefany, government director for Amphibious, Auxiliary and Sealift Programs in Program Executive Office Ships. “The approach provides best value to the taxpayers, supports our industry partners and provides the foundation for future warfighting capabilities.”