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Thursday, Dec 7, 2023

NASSCO Inks $600M in Ship Contracts


General Dynamics NASSCO signed $600 million in ship construction deals that will keep its Barrio Logan shipyard, as well as subcontractors throughout the country, busy from mid-2023 through 2027.

The U.S. Navy deals, announced on June 28, call for long-lead materials on three auxiliary ships: two fleet replenishment oilers and one expeditionary sea base ship.

Dave Carver
General Dynamics NASSCO

“NASSCO shipbuilders are honored to build T-AO 211, T-AO 212 and ESB 8,” said Dave Carver, president of General Dynamics NASSCO, in a statement.

Some $500 million will go toward preliminary work on the seventh and eighth oiler ships. Some 22% of the work will take place in San Diego, while 27% will be performed in Iron Mountain, Michigan, and 14% in Beloit, Wisconsin. The 742-foot, double hulled tankers can carry 157,000 barrels of oil (6.6 million gallons) and other supplies for fighting ships.

The remaining $100 million is for a sixth sea base ship (actually an eighth ship, if its two predecessors are counted). The 784-foot ship can serve as a helicopter base at sea and can support special operations, crisis response or air mine countermeasures. Some 31% of the work will be performed in Pittsburgh, 25% in Beloit, 17% in San Diego and 2% in Chula Vista. Small percentages of the work are going to Germany and South Korea.

The Naval Sea Systems Command in Washington, D.C. awarded the deals, which were technically contract modifications.

General Dynamics NASSCO is a subsidiary of Reston, Virginia-based General Dynamics (NYSE: GD), which reported $38.5 billion in revenue last year.


GA-ASI, Marines Strike Deal

The U.S. Marine Corps is sold on unmanned aircraft from General Atomics Aeronautical Systems Inc.

The Poway company said on July 17 that it will supply eight MQ-9A Extended Range unmanned aircraft systems to the Marines. Financial terms of the deal were not disclosed. The award, which came May 27, is part of an indefinite delivery, indefinite quantity contract known as ARES.

The MQ-9A can collect intelligence using a variety of sensors, and it can carry weapons. The Marine Corps bought its first MQ-9A aircraft in 2021. Prior to 2021, the Marines used similar aircraft owned and operated by GA-ASI. With their extended range capability, including the capacity for extra fuel, such aircraft are able to stay in the air upward of 30 hours.

“This capability will be a key ISR [intelligence, surveillance and reconnaissance] contributor for the Marine Air Ground Task Force – and ultimately for U.S. Indo-Pacific Command – as we pace ourselves to outmaneuver our adversaries,” said Patrick Shortsleeve, GA-ASI’s vice president of DoD strategic development, in a statement issued by the company.

GA-ASI said it is looking forward to awards for ground control systems and equipment, as well as spares later this year. The awards are part of the first increment of the Marine Air Ground Task Force (MAGTF) Unmanned Expeditionary (MUX) program of record.

The Poway company said it expects to deliver the first aircraft and support equipment this winter. That will facilitate the fleet standup in late summer 2023 for U.S. Marine Corps’ (USMC) Marine Unmanned Aerial Vehicle Squadron (VMU) 3 located at Marine Corps Air Station Kaneohe Bay, Hawaii. VMU-3 will operate these extended-range MQ-9A with their unique sensors and network capabilities to support training for the Marine Littoral Regiment.

General Atomics Aeronautical Systems Inc. is an affiliate of privately held General Atomics.

Separately, the U.S. Air Force, acting on behalf of the government of Spain, awarded a $16.2 million contract to General Atomics Aeronautical Systems. The deal provides sustainment support of MQ-9A and mission ground control station to the Spanish air force, to include launch and recovery aircrew, field service representatives, transportation and depot repair/return. Work is expected to be completed March 31, 2025. This award is the result of a sole-source acquisition. The Air Force Life Cycle Management Center at Wright-Patterson Air Force Base in Ohio awarded the contract, announced on July 26.


Harper Picks Up Work in Yuma

The Department of the Navy awarded San Diego-based Harper Construction Co. Inc. an $11.8 million modification to a previously issued task order for work at Marine Corps Air Station Yuma.

This modification provides for additional utilities for the aircraft protective equipment shelters, site/civil work for Hangar 95 site improvements, a hazardous material storage locker and accessories, realignment of Taxiway C and F connection, and apron edge lighting. With the modification, the total cumulative face value of the contract rises to $69.3 million. Work is expected to be completed by June 2023. The Naval Facilities Engineering Systems Command Southwest of San Diego awarded the contract, announced on July 14.


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