GD NASSCO Awarded $825 M for T-AKE Ship Construction

(San Diego, March 1, 2010) -- 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.

Source : General Dynamics Corporation (NYSE: GD)