Navy Seals Major T-AO Block Purchase Deal

The U.S. Navy is set to save $491 million through a new block buy approach, compared to costs associated with annual contracts. This strategy exemplifies the Department of Navy’s efforts to enhance operational capacity while ensuring financial prudence.

Nickolas H. Guertin, Assistant Secretary of the Navy for Research, Development, and Acquisition, emphasized the significance of this move. “This T-AO block buy delivers on the Department of Navy’s commitment to get more players on the field while growing near-term capability and capacity,” he stated. He further highlighted the multi-billion-dollar award as a reflection of innovation aimed at reinforcing maritime dominance and fostering critical investment within the shipbuilding industrial base.

Central to the deal is a Shipbuilding Capability Preservation Agreement with NASSCO. This agreement is designed to strengthen the shipbuilding industrial base, incentivizing shipbuilders to seek new private sector opportunities. This, in turn, reduces the Navy’s operating costs. The initiative aligns seamlessly with the Secretary of the Navy’s Maritime Statecraft initiative.

John Lighthammer, program manager for the Auxiliary and Special Mission Shipbuilding Program Office, also weighed in. “This block buy contract will provide capability for our fleet while providing cost savings to the Navy and stability for the shipbuilding industrial base,” he remarked. He underlined the crucial partnership between the Navy and NASSCO, highlighting the reliance on NASSCO’s shipbuilding workforce and its network of vendors and suppliers to deliver these ships.

The T-AO Fleet Replenishment Oilers are integral to naval operations, functioning as the primary fuel pipeline from resupply ports to station ships. They are responsible for the replenishment of bulk petroleum products, dry stores, packaged cargo, fleet freight, mail, and personnel to combatants and support forces underway.

Program Executive Office (PEO) Ships, one of the Department of Defense’s largest acquisition organizations, oversees the development and procurement of destroyers, amphibious ships, auxiliary ships, special mission ships, sealift ships, and support ships. This latest move underscores the Navy’s commitment to maintaining a robust and efficient fleet.