NASSCO receives $856 million funding to build US Navy’s T-AO 217

May 14, 2026, by Fatima Bahtić

General Dynamics NASSCO has received funding of $856 million for the construction of the US Navy’s T-replenishment oiler AO 217.

T-AO 209 during Sea Trials departing San Diego; Credit: NASSCO

The ship is part of NASSCO’s current block-buy contract with the US Navy for the construction of up to eight additional John Lewis-class fleet replenishment oilers (T-AO 214 through T-AO 221).

Dave Carver, president of General Dynamics NASSCO, stated: “The T-AO program is a cornerstone fixture for the dedicated team at NASSCO, representing the longest-standing Navy production series in our history. Funding for ship 13 (T-AO 217) helps maintain a stable workforce and reduces the risk of future layoffs. Our commitment to the Navy is to continue working at pace to deliver these critical ships to the fleet, while also securing timely funding for ships 14 through 17.”

In 2016, the US Navy awarded NASSCO a contract to design and build the first six ships of the next-generation fleet oilers, the John Lewis-class.

In 2022, the contract was modified to include three additional vessels (T-AO 211 through T-AO 213). A further expansion followed in 2024, when NASSCO received an additional eight-ship order covering T-AO 214 through T-AO 221.

NASSCO secures $1.7B deal to build pair of John Lewis-class oilers for US Navy

Vessels

The John Lewis-class oilers are designed to transfer fuel to US Navy vessels at sea. These 226-meter ships have a full-load displacement of approximately 49,850 tons, a fuel-carrying capacity of 162,000 barrels of oil, and space for significant dry cargo. They also feature aviation facilities and can reach speeds of up to 20 knots.

To date, the first five ships in the program have been delivered to the US Navy, while five additional vessels are currently under construction at the NASSCO shipyard.