General Dynamics National Steel and Shipbuilding Corporation (NASSCO) has been awarded a $1.4bn contract modifications for detail design and construction of three US Navy vessels.

The contracts involve the building of two John Lewis-class fleet oilers (T-AO), T-AO 211 and 212, and one Expeditionary Sea Base (ESB) ship, ESB 8.

It also includes an option for the procurement of an additional oiler vessel, T-AO 213.

The latest contracts follow $600m contract modifications awarded recently for the long-lead-time material procurement for ESB 8, T-AO 211 and 212.

Total potential value of the contracts for construction of four vessels stands at approximately $2.7bn.

General Dynamics NASSCO president Dave Carver said: “NASSCO is committed to working together with Navy to deliver these much-needed ships to fleet.

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“As partners with navy, we remain dedicated to ensuring success of both of these programmes to help enhance and expand navy’s forward presence and warfighting capabilities while providing sustained growth for our workforce.”

Work on all four vessels is expected to commence in the third quarter of next fiscal year (FY) and will continue until 2027.

Associated work will mainly be carried out at NASSCO’s shipyard in San Diego, California.

The initial contracts for the design and construction of ESBs and first six John Lewis-class oilers were awarded to NASSCO in 2011 and 2016 respectively.

The ESB programme had evolved and the company is currently working on the production of two ships, USS John L Canley (ESB 6) and USS Robert E Simanek (ESB 7).

Under the T-AO programme, USNS Harvey Milk (T-AO 206), Earl Warren (T-AO 207), and Robert F Kennedy (T-AO 208) are under different stages of construction.