General Dynamics NASSCO Awarded $825 Million Contract for T-AKE Ship Construction

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Mar 01, 2010, 02:30 ET

SAN DIEGO, March 1 /PRNewswire-FirstCall/ -- General Dynamics NASSCO, a wholly-owned subsidiary of General Dynamics (NYSE: GD), has been awarded an $824.6 million contract from the U.S. Navy for the construction of two T-AKE dry cargo-ammunition ships.

Announced by the Department of Defense on February 26, the contract provides full funding to NASSCO for the construction of T-AKE 13, the future USNS Medgar Evers, and T-AKE 14, the unnamed final ship of the Lewis and Clark class. In December 2008, NASSCO received a $200 million contract to purchase the engines and other long lead materials for these ships. Construction of T-AKE 13 and 14 is scheduled to begin in the second and fourth quarters of 2010, respectively. NASSCO expects to deliver both ships to the Navy's Military Sealift Command in 2012.

General Dynamics NASSCO employs more than 4,300 people and is the only full-service ship construction and repair yard on the West Coast of the United States. The shipyard delivered its ninth T-AKE ship on February 24 and is currently building the tenth through twelfth ships of the class. More information about NASSCO can be found at www.nassco.com .

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 91,700 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com .

SOURCE General Dynamics NASSCO