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General Dynamics - NASSCO Awarded $460 Million Contract for T-AKE Ship Construction

General Dynamics : 04 February, 2008  (New Product)
General Dynamics NASSCO, a wholly-owned subsidiary of General Dynamics, has been awarded a $460 million contract from the U.S. Navy for the construction of a tenth T- AKE dry cargo-ammunition ship, and to purchase long-lead construction materials for an eleventh ship. NASSCO is already under contract to build the first nine ships of the class; the first four vessels are now in service.
'This contract award permits the NASSCO shipbuilding team to continue delivering these much-needed fleet support ships in a timely manner, at the best value to the U.S. government,' said Frederick J. Harris, president of General Dynamics NASSCO.

Under the contract, NASSCO receives full funding for T-AKE 10's construction. Last July, NASSCO received a $100 million contract to purchase the long-lead materials for the ship. Construction of the ship is scheduled to begin in January 2009, with delivery to the Navy's Military Sealift Command (MSC) in the fourth quarter of 2010. In addition, the contract award includes $100 million for procurement of T-AKE 11's engines and other components that have significant manufacturing lead times. Construction of the eleventh ship is scheduled to begin in the first quarter of 2010, with delivery in the fourth quarter of 2011. The Navy is expected to order a total of 14 T-AKE ships.
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