NASSCO can't meet Navy Cost and Schedule for new Oiler Class

 


USNS Jogn Lewis launches from NASSCO, San Diego, California
San Diego NASSCO Shipyard Faces Challenges with Lewis-Class Oiler Construction

SAN DIEGO — General Dynamics NASSCO, a major shipbuilding facility in San Diego, is experiencing significant cost overruns and schedule delays in the construction of the new Lewis-class fleet oilers for the U.S. Navy, according to industry sources.

The John Lewis-class ships construction program, initially valued at roughly $4 billion for six vessels, has encountered budget overruns of at least $85.2 million and schedule delays of 12 to 15 months, as reported by the Congressional Research Service. These ships are critical to the Navy's operational capabilities, designed to transfer fuel and supplies to vessels at sea.

The lead ship, USNS John Lewis, experienced cost increases to $759.4 million, representing an overrun of $85.2 million from initial estimates. Despite these challenges, the Navy officially took delivery of the USNS John Lewis in July 2022.

NASSCO attributed some of the challenges to pandemic-related difficulties, stating in April 2022 that "the T-AO Class has been under construction during one of the most difficult pandemics of our generation." Industry analysts note that labor shortages and supply chain disruptions have affected multiple defense shipbuilding programs in recent years.

Despite these initial setbacks, the Navy has shown continued confidence in NASSCO by awarding a new contract in September 2024. This block-buy contract could total $6.7 billion for the construction of up to eight additional Lewis-class oilers. According to the Navy, this block-buy approach is expected to save approximately $491 million compared to annual contracts.

The recent contract award follows a 2016 agreement for the first six ships and subsequent options in 2022 and 2023. With the latest contract, NASSCO now has established options for up to 17 Lewis-class oilers, with the Navy planning for a total fleet of 20 vessels.

According to John Lighthammer, program manager at the Navy's Auxiliary and Special Mission Shipbuilding Program Office, "USNS John Lewis will provide much needed capability to the fleet as the primary fuel pipeline at sea." The vessels will be operated by Military Sealift Command to deliver fuel and supplies to Navy carrier strike groups.

Sources:

  1. San Diego Union-Tribune: "NASSCO's $4 billion Navy fuel-ship construction program is facing cost overruns and delays" https://www.sandiegouniontribune.com/business/story/2022-04-07/nassco-navy-fuel-ship-overruns

  2. General Dynamics NASSCO: "General Dynamics NASSCO Launches First Ship in the T-AO Fleet Oiler Program for the U.S. Navy" https://nassco.com/press-releases/general-dynamics-nassco-launches-first-ship-in-the-t-ao-fleet-oiler-program-for-the-u-s-navy/

  3. USNI News: "GD NASSCO Wins $6.7 Billion, 8 Ship Fleet Oiler Contract" https://news.usni.org/2024/09/15/gd-nassco-wins-6-7-billion-8-ship-fleet-oiler-contract

  4. Army Recognition: "NASSCO launches future US Navy USNS John Lewis T-AO-205 replenishment oiler ship" https://www.armyrecognition.com/news/navy-news/2021/nassco-launches-future-us-navy-usns-john-lewis-t-ao-205-replenishment-oiler-ship

  5. Marine Log: "GD-NASSCO launches T-AO 25" https://www.marinelog.com/shipbuilding/shipyards/shipyard-news/gd-nassco-launches-t-ao-25/

  6. USNI News: "John Lewis-Class Oilers Begin Construction at NASSCO" https://news.usni.org/2019/05/14/john-lewis-class-oilers-begin-construction-at-nassco

  7. Times of San Diego: "NASSCO Shipyard, Under New Navy Contract, to Continue Producing Lewis-Class Oil Tankers" https://timesofsandiego.com/military/2024/09/13/nassco-shipyard-under-new-navy-contract-to-continue-producing-lewis-class-oil-tankers/

  8. Marine Link: "US Navy Takes Delivery of USNS John Lewis (T-AO 205)" https://www.marinelink.com/news/us-navy-takes-delivery-usns-john-lewis-498394

Comments

Post a Comment

Popular posts from this blog

Nicholas A Lambert and WW1 - Everything old is new again.

Image
Everything old is new again. The economics, politics, and conflicts of the early 20th century are looking familiar in todays headlines. Maybe we can learn something from a top notch economist and historian study of the first World War. Nicholas Lambert received his undergraduate and graduate degrees from Oxford University. The World War One Historical Association has twice awarded him the Norman B. Tomlinson book prize: Sir John Fisher's Naval Revolution (1999) and Planning Armageddon: British Economic Warfare and the First World War (2013).  Lambert discusses Britain's carefully planned grand strategy of economic warfare intended to bring about the rapid collapse of Germany’s financial systems through engineering a controlled implosion of the global trading system. As such, "economic warfare" constituted a national strategy of quick, decisive war comparable in function and objectives to Germany’s infamous S...
Read more

Top Military and Marine Unmanned Underwater Vehicle Companies

Image
The Boeing Echo Voyager unmanned underwater vehicle is the model for the U.S. Navy extra-large unmanned underwater vehicle (XLUUV), which is developing four prototypes. Summary Here's a concise summary of military and marine autonomous underwater vehicle companies. Key Market Information: - The unmanned underwater vehicles market is valued at $4.8 billion in 2024 - Projected to reach $11.1 billion by 2030, growing at 15% CAGR - Growth driven by increasing investment in commercial and defense applications Leading Companies: Traditional Defense/Military Leaders: 1. Kongsberg (Norway) - Maritime tech and defense systems leader since 1814 2. Saab AB (Sweden) - Known for Sabertooth UUV with deep water capabilities 3. Boeing (USA) - Produces Echo Voyager, the model for US Navy's XLUUV program 4. Lockheed Martin (USA) - Provides underwater drones and sonar systems 5. Oceaneering International (USA) - Major ROV manufacturer, offers Freedom AUV 6. Fugro (Netherlan...
Read more

RTX (ex-Raytheon) busted for ‘extraordinary’ corruption | Responsible Statecraft

Image
RTX (ex-Raytheon) busted for ‘extraordinary’ corruption | Responsible Statecraft Summary RTX (formerly known as Raytheon) has agreed to pay nearly $1 billion in fines and penalties to resolve multiple cases of misconduct. Here's a summary of the offenses and amounts paid: 1. Defrauding the Department of Defense:    - RTX engaged in two schemes to defraud the DOD in connection with contracts for Patriot missile systems and a radar system.    - This resulted in the DOD overpaying by over $111 million.    - RTX will pay a criminal monetary penalty of $146,787,972 and $111,203,009 in victim compensation. 2. Bribery in Qatar:    - RTX bribed a high-level Qatari military official to secure defense contracts between 2012 and 2016.    - For this, RTX will pay a criminal monetary penalty of $230.4 million and forfeit $36,696,068. 3. Export Control Violations:    - RTX violated the Arms Export Control Act by failing to ...
Read more