Detail design and construction of the oiler T-AO 205: ~$5.9B — the ship that sets the fleet's reach (NASSCO, Navy)
The U.S. Navy awarded National Steel and Shipbuilding Company (NASSCO) the detail design and construction (DD&C) of the fleet oiler T-AO 205, valued at about $5.9 billion. It is not a combatant, but a replenishment ship determines how far and how long a fleet can operate.
Contract key facts
- RecipientNATIONAL STEEL AND SHIPBUILDING COMPANY
- Contract value$5,903,532,971 (≈$5.9B)
- BranchNavy
- Awarding agencyDepartment of Defense
- Awarding sub-agencyDepartment of the Navy
- Award typeDEFINITIVE CONTRACT
- Period of performance2016-06-30 〜 2028-03-22
- Contract ID (PIID)N0002416C2229
The amount cited in the write-up ($5,899,193,277) is the figure at the time of writing. After later modifications the record now shows $5,903,532,971 (the details above are current).
Contract scope (original)
DETAIL DESIGN AND CONSTRUCTION (DD&C) FOR T-AO 205
Key points
- The Navy ordered detail design and construction (DD&C) of the oiler T-AO 205 from NASSCO.
- Value ~$5.90B ($5,899,193,277; multi-year cumulative); June 2016 to March 2028, nearly twelve years.
- "AO" denotes an oiler; the leading "T" indicates operation by the Military Sealift Command.
- DD&C = the same contractor finishes the design and builds the ship.
- NASSCO, based in San Diego, is a different yard from those in the other ship contracts this site covers.
- An oiler does not stand out by amount, yet it sets the fleet radius and days on station; without it combatants cannot go far.
1What the designation T-AO means
U.S. Navy ships carry letter designations for their type. "AO" denotes an oiler, and the leading "T" indicates a ship operated by the Military Sealift Command. T-AO 205 is therefore a vessel for refueling the fleet. It is not a type discussed in terms of armament, but whether ships can take on fuel at sea directly governs how far from home and how long a fleet can operate.
2Detail design and construction as a contract form
DD&C stands for Detail Design and Construction, a form in which the same contractor both finishes the design and builds the ship. After the basic concept is set, someone must work it down to drawings from which steel can actually be cut and assembled, and then build to those drawings.
Splitting design from construction tends to lose the intent of the drawings on the way to the yard and cause rework, so this combined form is used for one-off construction like shipbuilding.
3A twelve-year period of performance
The period runs from June 2016 to March 2028, nearly twelve years. Shipbuilding takes many years from contract to commissioning, and the value of about $5.90 billion is the cumulative total of modifications across that span. NASSCO is a shipbuilder based in San Diego, California — a different yard from those in the other ship contracts this site covers (Electric Boat for submarines, Huntington Ingalls for destroyers).
4The types at the top, and the types that carry them
Sorted by amount, naval procurement puts combatants — submarines, carriers, destroyers — at the top. Yet without an oiler, none of those combatants can operate far from home ports.
US Navy ships carry designations. AO means an oiler, and the leading T marks a ship operated by Military Sealift Command. That a type with no glamour carries a contract of billions is a useful handle on the fleet as a whole system.
Why it matters
In shipbuilding, each yard has its own strengths and facilities, so the distribution of recipients is effectively a map of the industrial base. Support ships attract less attention than combatants but carry large contracts and draw on a wide supplier base — steel, machinery, piping, and electrical work.
FAQ
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Sources (primary)
This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.
- USAspending (award details)
- Contract ID (PIID)：N0002416C2229