In a move that solidifies its position in supporting the US Navy's fleet, General Dynamics NASSCO, a player in shipbuilding and repair, has secured a contract from the US Navy valued at up to $754m.
The agreement will see the modernisation, maintenance and repair of the two US Navy Arleigh Burke-class destroyers, the USS Chung-Hoon (DDG 93) and USS James E. Williams (DDG 95).
General Dynamics NASSCO, a subsidiary of General Dynamics, unveiled the development, underlining its commitment to the US Navy's operational efficiency. The initial contract of $15.6m has options that could lead to a cumulative value of $753.8m.
General Dynamics is set to be the third-largest supplier of naval vessels and surface combatants in North America, with a 5.6% share of the North American market over 2023–33, according to GlobalData's The Global Naval Vessels and Surface Combatants Market 2023-2033 report.
Dave Baker, the vice-president of repair for General Dynamics NASSCO, said: "NASSCO and our industry partners are looking forward to executing a pair of successful availabilities and are thankful the Navy has sole-sourced the contract to us to lead this effort."
The work involved in this contract will be performed in two key locations: Norfolk, Virginia, and San Diego, California. The potential value of $753.8m underscores the magnitude of the undertaking, and if all options are exercised, the work will continue through November 2030.
General Dynamics NASSCO specialises in the construction and design of ships, serving both the US Navy and commercial markets. Its capabilities extend to ship repair services for the Navy, with operations in San Diego, Norfolk, Mayport and Bremerton.
In June 2022, General Dynamics NASSCO was awarded a $600m US Navy contract to support the construction of the seventh and eighth ships in the John Lewis-class fleet oiler programme, as well as the sixth ship in the Expeditionary Sea Base programme.
