Navy awards $825 million contract to NASSCO

The General Dynamic NASSCO shipyard in San Diego was awarded a $825 million contract from the U.S. Navy to build two T-AKE dry cargo and ammunition ships, it was announced Monday.

The contract, through the U.S. Department of Defense, funds the instruction of the USNS Medgar Evers and an unnamed Lewis and Clark-class ship, according to NASSCO.

In December 2008, NASSCO received a $200 million contract to purchase the engines and other materials for the ships.

Construction on the vessels is scheduled to begin in the second and fourth quarters of this year, respectively, according to the shipyard. NASSCO expects to deliver the ships to the Navy in 2012.

The shipyard, which employs more than 4,300 people, delivered its ninth T-AKE ship to the Navy last month, and work is already under way on three others.