The Department of Defense has awarded San Diego’s General Dynamics-NASSCO $3.9 million to produce conceptual designs for a new generation of Navy oiler ships, work that could lead to large construction contracts at one of the region’s largest employers.
NASSCO will compete with Canada’s Vard Marine, which was given $4.5 million for the same kind of design.
The Navy says it is looking to augment its existing combat logistics ships, which include the 746-foot Lewis-class oilers that NASSCO has and will build at its yard in Barrio Logan.
The Next Generation Logistics Ship is meant to be a smaller vessel that can refuel, rearm and resupply Navy and Marine vessels throughout the world.
NASSCO is the last major shipbuilder on the West Coast and currently employs about 3,500 workers, which is half of its operating capacity. Earlier this year, Chief of Naval Operations Adm. Daryl Caudle told reporters in San Diego that he wants to explore whether NASSCO and nearby BAE Systems can expand their ability to repair warships, which require a lot of maintenance because they are in heavy use.