NASSCO Awarded $100m Contract for Tenth T-AKE's Long-Lead Materials

Maritime Activity Reports, Inc.

July 23, 2007

General Dynamics NASSCO, a wholly-owned subsidiary of General Dynamics , has been awarded a $100m contract from the U.S. Navy to purchase long-lead materials for the construction of a tenth T-AKE dry cargo-ammunition ship. NASSCO already is under contract to construct nine T-AKE ships at its shipyard.

Under the contract, NASSCO will place orders for the ship's engines and other components that have significant manufacturing lead times. A contract that funds construction of the ship is expected to be awarded by January 2008. Construction of T-AKE 10 is expected to begin in the first quarter of 2009; delivery to the Navy's Military Sealift Command (MSC) is scheduled for the first quarter of 2011. The Navy is expected to order a total of 11 T-AKE ships for MSC service and three additional ships for its Maritime Prepositioning Force.

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