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

SAN DIEGO – General Dynamics NASSCO, a wholly-owned subsidiary of General Dynamics (NYSE: GD), 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.

General Dynamics NASSCO employs approximately 4,700 people and is the only major ship construction yard on the West Coast of the United States. In addition to the T-AKE program, the San Diego shipyard is building the first two ships of a new class of nine product carriers for U.S. Jones Act trade. More information about NASSCO can be found at

General Dynamics, headquartered in Falls Church, Va., employs approximately 83,500 people worldwide and reported 2007 revenues of $27.2 billion. 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

February 1, 2008
Contact: Karl D. Johnson
Tel: 619 544 8860
Cell: 619 756 5039

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