

 
Navy John Lewis (TAO-205) Class Oiler 
Shipbuilding Program: Background and 
Issues for Congress 
Updated December 22, 2020 
Congressional Research Service 
https://crsreports.congress.gov 
R43546 
 
  
 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Summary 
The Navy began procuring John Lewis (TAO-205) class oilers in FY2016, and a total of six have 
been procured through FY2020, including two in FY2020. The first six TAO-205s are being 
procured under a block buy contract that was authorized by Section 127 of the FY2016 National 
Defense Authorization Act (S. 1356/P.L. 114-92 of November 25, 2015). The Navy’s FY2021 
budget submission estimates that TAO-205s cost about $530 million each when they are procured 
at a rate of two per year. The Navy wants to procure a total of 20 TAO-205s. The ships are being 
built by General Dynamics/National Steel and Shipbuilding Company (GD/NASSCO) of San 
Diego, CA. 
The Navy’s FY2020 budget submission projected a request for one TAO-205 class ship in 
FY2021 and programmed a total of six over the period FY2021-FY2025. Under the Navy’s 
FY2021 budget submission, however, no TAO-205 class ship is requested for procurement in 
FY2021, and a total of four are programmed for the period FY2021-FY2025. The Navy’s 
FY2021 budget requests $59.9 million in FY2021 cost-to-complete procurement funding to cover 
cost growth on TAO-205s procured in prior fiscal years, but it does not request any FY2021 
funding for the procurement of additional TAO-205s. 
Issues for Congress include the following: 
  the potential impact of the COVID-19 situation on the execution of U.S. military 
shipbuilding programs, including the TAO-205 program; 
  whether to fund the procurement in FY2021 of no TAO-205 class ship (as 
requested by the Navy), one TAO-205 class ship (as was projected for FY2021 
under the Navy’s FY2020 budget submission), or two TAO-205s (as were 
procured in FY2020 and also in FY2019). 
  the number of oilers the Navy will require in coming years to support its 
operations, particularly in light of the Navy’s new Distributed Maritime 
Operations (DMO) operating concept; and 
  whether to encourage or direct the Navy to build TAO-205s with more ship self-
defense equipment than currently planned by the Navy. 
Congressional Research Service 
 link to page 5  link to page 5  link to page 5  link to page 5  link to page 6  link to page 7  link to page 7  link to page 9  link to page 9  link to page 11  link to page 11  link to page 11  link to page 11  link to page 12  link to page 12  link to page 13  link to page 13  link to page 13  link to page 13  link to page 14  link to page 16  link to page 16  link to page 16  link to page 17  link to page 17  link to page 17  link to page 19  link to page 19  link to page 21  link to page 21  link to page 22  link to page 22  link to page 6  link to page 7  link to page 8  link to page 9  link to page 10  link to page 11 Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Contents 
Introduction ..................................................................................................................................... 1 
Background ..................................................................................................................................... 1 
Navy Fleet Oilers ...................................................................................................................... 1 
Role of Fleet Oilers ............................................................................................................. 1 
Existing Kaiser (TAO-187) Class Oilers ............................................................................ 2 
TAO-205 Program ..................................................................................................................... 3 
Program Name .................................................................................................................... 3 
Ship Design and Capabilities .............................................................................................. 5 
Planned Total Procurement Quantity .................................................................................. 5 
Planned Annual Procurement Quantities ............................................................................ 7 
Unit Procurement Cost ........................................................................................................ 7 
Builder ................................................................................................................................ 7 
Block Buy Contract............................................................................................................. 7 
U.S. Content Requirement for Certain Components ........................................................... 8 
FY2021 Funding ................................................................................................................. 8 
Issues for Congress .......................................................................................................................... 9 
Potential Impact of COVID-19 Situation .................................................................................. 9 
Number of TAO-205s to Procure in FY2021 ............................................................................ 9 
Required Number of Oilers ....................................................................................................... 9 
Issues Discussed in June 2020 GAO Report ........................................................................... 10 
TAO-205 Ship Self-Defense Equipment ................................................................................. 12 
Legislative Activity for FY2021 .................................................................................................... 12 
Summary of Congressional Action on FY2021 Funding ........................................................ 12 
FY2021 National Defense Authorization Act (H.R. 6395/S. 4049) ........................................ 13 
House ................................................................................................................................ 13 
Senate (Committee Report) ............................................................................................... 13 
Senate (Floor Consideration) ............................................................................................ 15 
Conference ........................................................................................................................ 15 
FY2021 DOD Appropriations Act (H.R. 7617/S. XXXX/Division C of H.R. 133) ............... 17 
House ................................................................................................................................ 17 
Senate ................................................................................................................................ 18 
Conference ........................................................................................................................ 18 
 
Figures 
Figure 1. Fleet Oiler Conducting an UNREP .................................................................................. 2 
Figure 2. Fleet Oiler Conducting an UNREP .................................................................................. 3 
Figure 3. Fleet Oiler Conducting an UNREP .................................................................................. 4 
Figure 4. Kaiser (TAO-187) Class Fleet Oiler ................................................................................ 5 
Figure 5. Artist’s Rendering of the Oiler John Lewis (TAO-205) ................................................... 6 
  
Tables 
Table 1. TAO-205 Procurement Quantities, FY2021-FY2025 ........................................................ 7 
Congressional Research Service 
 link to page 16  link to page 24  link to page 25 Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Table 2. Congressional Action on FY2021 Funding for Additional TAO-205s ............................ 12 
  
Appendixes 
Appendix A. TAO-205 Ship Self-Defense Equipment .................................................................. 20 
 
Contacts 
Author Information ........................................................................................................................ 21 
 
Congressional Research Service 
 link to page 6  link to page 7  link to page 8 Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Introduction 
This report provides background information and issues for Congress on the John Lewis (TAO-
205) class oiler shipbuilding program, a program to build a new class of 20 fleet oilers for the 
Navy. The Navy’s proposed FY2021 budget does not request any funding for the procurement of 
additional TAO-205s. 
Issues for Congress regarding the TAO-205 program include the number of TAO-205s to procure 
in FY2021, the number of oilers the Navy will require in coming years to support its operations, 
and whether to encourage or direct the Navy to build TAO-205s with more ship self-defense 
equipment than currently planned by the Navy. 
For an overview of the strategic and budgetary context in which the TAO-205 program and other 
Navy shipbuilding programs may be considered, see CRS Report RL32665, Navy Force Structure 
and Shipbuilding Plans: Background and Issues for Congress, by Ronald O'Rourke. 
Background 
Navy Fleet Oilers 
Role of Fleet Oilers 
The primary role of Navy fleet oilers is to transfer fuel to Navy surface ships that are operating at 
sea, so as to extend the operating endurance of these surface ships and their embarked aircraft. 
Fleet oilers also provide other surface ships with lubricants, fresh water, and small amounts of dry 
cargo. Fleet oilers transfer fuel and other supplies to other surface ships in operations called 
underway replenishments (UNREPs). During an UNREP, an oiler steams next to the receiving 
ship and transfers fuel by hose (see Figure 1, Figure 2, and Figure 3).1 
Oilers are one kind of Navy UNREP ship; other Navy UNREP ships include ammunition ships, 
dry cargo ships, and multiproduct replenishment ships. The Navy’s UNREP ships are known 
more formally as the Navy’s combat logistics force (CLF). Most of the Navy’s CLF ships are 
operated by the Military Sealift Command (MSC). 
Although the role of fleet oilers might not be considered as glamorous as that of other Navy ships, 
fleet oilers are critical to the Navy’s ability to operate in forward-deployed areas around the world 
                                                 
1 The Navy states that 
A typical connected replenishment starts when a warship makes an “approach” on a CLF ship. The 
CLF ship maintains steady course and speed while the “customer ship” approaches and comes 
alongside the CLF ship, matching course and speed. The distance between the two ships is usually 
between 120-200 feet. The CLF ship then passes heavy metal wires, to the customer ship, that are 
connected at the replenishment stations. These wires are placed under tension to support fuel hoses 
for refueling operations or trolleys that move pallets of provisions, ammunition, or other cargo from 
ship to ship. Ships with flight decks can also receive provisions and ammunition via vertical 
replenishment. During this evolution a helicopter transfers cargo in external sling loads, or in the 
case of mail or passengers, inside the helicopter. 
(Statement of Mr. F. Scott DiLisio, Director, Strategic Mobility / Combat Logistics Division, 
Office of the Chief of Naval Operations, on the Logistics and Sealift Force Requirements and Force 
Structure Assessment Before the House Armed Services Committee Seapower and Projection 
Forces Subcommittee, July 30, 2014, p. 3.) 
Congressional Research Service  
 
1 
 link to page 9  link to page 6  link to page 7  link to page 8 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
on a sustained basis. The U.S. Navy’s ability to perform UNREP operations in a safe and efficient 
manner on a routine basis is a skill that many other navies lack. An absence of fleet oilers would 
significantly complicate the Navy’s ability to operate at sea on a sustained basis in areas such as 
the Western Pacific or the Indian Ocean/Persian Gulf region. The Navy states that 
the ability to rearm, refuel and re-provision our ships at sea, independent of any restrictions 
placed on it by a foreign country, is critical to the Navy’s ability to project warfighting 
power from the sea. 
As  the  lifeline  of  resupply  to  Navy  operating  forces  underway,  the  ships  of  the  Navy’s 
Combat Logistic Force (CLF) enable Carrier Strike Groups and Amphibious Ready Groups 
to operate forward and remain on station during peacetime and war, with minimal reliance 
on host nation support.2 
Figure 1. Fleet Oiler Conducting an UNREP 
 
Source: Navy photo accessed May 5, 2014, at http://www.navy.mil/view_image.asp?id=163895. The Navy states 
that the photo is dated October 24, 2013, and shows the oiler Tippecanoe (TAO-199) extending its fuel probe to 
the Aegis cruiser USS Antietam (CG-54), a part of the George Washington (CVN-73) Carrier Strike Group, in the 
South China Sea. 
Existing Kaiser (TAO-187) Class Oilers 
The Navy’s existing force of fleet oilers consists of 15 Henry J. Kaiser (TAO-187) class ships 
(Figure 4), commonly called Kaiser-class oilers for short.3 These ships were procured between 
FY1982 and FY1989 and entered service between 1986 and 1996. They have an expected service 
                                                 
2 Statement of Mr. F. Scott DiLisio, Director, Strategic Mobility / Combat Logistics Division, Office of the Chief of 
Naval Operations, on the Logistics and Sealift Force Requirements and Force Structure Assessment Before the House 
Armed Services Committee Seapower and Projection Forces Subcommittee, July 30, 2014, pp. 2-3. 
3 The oilers shown in Figure 1, Figure 2, and Figure 3 are also Kaiser-class class oilers. 
Congressional Research Service  
 
2 

Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
life of 35 years; the first ship in the class will reach that age in 2021. The ships are about 677 feet 
long and have a full load displacement of about 41,000 tons, including about 26,500 tons of fuel 
and other cargo. The ships were built by Avondale Shipyards of New Orleans, LA, a shipyard that 
eventually became part of the shipbuilding firm Huntington Ingalls Industries (HII). HII 
subsequently wound down Navy shipbuilding operations at Avondale, and the facility no longer 
builds ships. (HII continues to operate two other shipyards that build Navy ships.) 
Figure 2. Fleet Oiler Conducting an UNREP 
 
Source: Navy photo accessed May 5, 2014, at http://www.navy.mil/view_image.asp?id=61415. The Navy states 
that the photo is dated July 13, 2008, and shows the oiler Leroy Grumman (TAO-195) refueling the frigate 
Underwood (FFG-36) during an exercise with the Iwo Jima (LHD-7) Expeditionary Strike Group in the Atlantic 
Ocean. 
TAO-205 Program 
Program Name 
Navy oilers carry the designation TAO (sometimes written as T-AO). The T means that the ships 
are operated by MSC with a mostly civilian crew; the A means it is an auxiliary ship of some 
kind; and the O means that it is, specifically, an oiler. TAO-205 will be the Navy’s next oiler after 
TAO-204, which is the final Kaiser-class oiler. 
Congressional Research Service  
 
3 

Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
On January 6, 2016, then-Secretary of the Navy Ray Mabus announced that the TAO-205 class 
ships will be named for “people who fought for civil rights and human rights,”4 and that the first 
ship in the class, TAO-205, which was procured in FY2016, was being be named for 
Representative John Lewis,5 making TAO-205 one of a small number of Navy ships that have 
been named for people who were living at the time that the naming announcement was made.6 
TAO-205 class ships consequently are now known as John Lewis-class oilers. 
Figure 3. Fleet Oiler Conducting an UNREP 
 
Source: Navy photo accessed May 5, 2014, at http://www.navy.mil/view_image.asp?id=1737. The Navy states 
that the photo is dated June 19, 2002, and shows the oiler Walter S. Diehl (TAO-193), at center, conducting 
simultaneous UNREPs with the aircraft carrier John F. Kennedy (CV-67) and the Aegis destroyer Hopper (DDG-
70). CV-67, a conventionally powered carrier, has since retired from the Navy, and all of the Navy’s aircraft 
carriers today are nuclear powered. Even so, Navy oilers continue to conduct UNREPs with Navy aircraft 
carriers to provide fuel for the carriers’ embarked air wings. 
                                                 
4 Valerie Insinna, “Navy to Name Next Generation Oilers for Civil Rights Icons,” Defense Daily, January 7, 2016. For 
more on the names of TAO-205 class ships, see CRS Report RS22478, Navy Ship Names: Background for Congress, 
by Ronald O'Rourke. 
5 “Secretary of the Navy Ray Mabus Names Fleet Replenishment Oiler,” Navy News Service, January 6, 2016; Sam 
LaGrone, “SECNAV Mabus Names First TAO(X) Next Generation Oiler After Rep. John Lewis,” USNI News, January 
6, 2016; “Navy to Name New Oiler after Civil Rights Icon,” Military.com, January 6, 2020; Valerie Insinna, “Navy to 
Name Next Generation Oilers for Civil Rights Icons,” Defense Daily, January 7, 2016. 
6 Representative Lewis died on July 17, 2020. For more on Navy ships named for people who were living at the time 
that the naming announcement was made, see CRS Report RS22478, Navy Ship Names: Background for Congress, by 
Ronald O'Rourke. 
Congressional Research Service  
 
4 
 link to page 6  link to page 7  link to page 8  link to page 10 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Figure 4. Kaiser (TAO-187) Class Fleet Oiler 
 
Source: U.S. Navy image accessed April 14, 2014, at http://www.navy.mil/management/photodb/photos/130703-
N-TG831-240.jpg. (The oilers shown in Figure 1, Figure 2, and Figure 3 are also Kaiser-class class oilers.) 
Ship Design and Capabilities 
The TAO-205 class design (Figure 5) will have capabilities similar to those of the Kaiser-class 
ships, and will rely on existing technologies rather than new technologies. To guard against oil 
spills, TAO-205s are to be double-hulled, like modern commercial oil tankers, with a space 
between the two hulls to protect the inner hull against events that puncture the outer hull. (The 
final Kaiser-class ships are double-hulled, but earlier ships in the class are single-hulled.) 
Planned Total Procurement Quantity 
Currently Planned Total Procurement Quantity of 20 
The required number of oilers largely depends on the numbers and types of other surface ships 
(and their embarked aircraft) to be refueled, and the projected operational patterns for these ships 
and aircraft. The Navy’s current force-level objective, released on December 15, 2016, calls for 
achieving and maintaining a 355-ship fleet, including 32 CLF ships, of which 20 are to be TAO-
205s.7 Consistent with this plan, the Navy currently wants to procure a total of 20 TAO-205s. 
 
                                                 
7 For more on the Navy’s 355-ship force-level goal, see CRS Report RL32665, Navy Force Structure and Shipbuilding 
Plans: Background and Issues for Congress, by Ronald O'Rourke.  
Congressional Research Service  
 
5 

Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Figure 5. Artist’s Rendering of the Oiler John Lewis (TAO-205) 
 
Source: “US Navy Picks General Dynamics to Build First Six T-AO 205 Replenishment Oilers,” NavalToday.com, 
July 1, 2016, which credits the image to GD/NASSCO. The background shows the skyline of San Diego, where 
GD/NASSCO is located. 
Potential Increase in Planned Total Procurement Quantity under Navy’s New 
Battle Force 2045 Plan 
The Navy and DOD since 2019 have been working to develop a new Navy force-level goal to 
replace the Navy’s current 355-ship force-level goal. The conclusion of this work and the release 
of its results to Congress have been delayed repeatedly since late 2019. 
On October 6, 2020, Secretary of Defense Mark Esper provided some details on the Trump 
Administration’s new Navy force-level goal, which it calls Battle Force 2045. This new force-
level goal calls for achieving a fleet of more than 500 manned and unmanned ships by 2045, 
including 355 manned ships prior to 2035.8 In his remarks, Esper stated: “Initial estimates 
identify the need for … 70 to 90 combat logistic ships [of all types]. But further work is 
underway to determine if the number of logistic [ships] forecasted in this report are sufficient for 
the future fight.”9 
A total of 70 to 90 CLF ships would be 38 to 58 more CLF ships than the 32 such ships that are 
included in the Navy’s current 355-ship force-level objective. Of the additional 38 to 58 CLF 
ships, some (perhaps many) would be new, smaller CLF ships, called that the Medium Logistics 
Ships, that Navy plans currently envisage, and for which the Navy has requested initial research 
and development funding as part of its proposed FY2021 budget. It is also possible, however, that 
some of the 38 to 58 additional CLF ships would be additional TAO-205s. If so, the adoption of 
                                                 
8 For more on Battle Force 2035, see CRS Report RL32665, Navy Force Structure and Shipbuilding Plans: 
Background and Issues for Congress, by Ronald O'Rourke. 
9 Department of Defense, “Secretary Of Defense Remarks at CSBA [Center for Strategic and Budgetary Assessments] 
on the NDS [National Defense Strategy] and Future Defense Modernization Priorities,” transcript of remarks, October 
6, 2020. 
Congressional Research Service  
 
6 
 link to page 11 Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Battle Force 2045 as the Navy’s new force-level goal could increase the planned number of TAO-
205s from 20 to some higher number. A September 24, 2020, press report about studies done in 
April 2020 as part of the effort to develop Battle Force 2045 stated that the studies recommended 
increasing the Navy’s force-level goal for fleet oilers (i.e., ships like TAO-205s) to a total of 21 to 
31.10 
Planned Annual Procurement Quantities 
The Navy procured the first TAO-205 in FY2016, the second in FY2018, the third and fourth in 
FY2019, and the fifth and sixth in FY2020. The first TAO-205 is scheduled for delivery in June 
2021. 
Table 1 compares the Navy’s FY2020 and FY2021 budget submissions in terms of numbers of 
TAO-205s programmed for procurement during the period FY2021-FY2025. As can be seen in 
the table, the Navy’s FY2020 budget submission projected a request for one TAO-205 class ship 
in FY2021 and programmed a total of six TAO-205s over the period FY2021-FY2025, while the 
Navy’s FY2021 budget submission does not request a TAO-205 class ship in FY2021 (or 
FY2022) and programs a total of four over the period FY2021-FY2025.  
Table 1. TAO-205 Procurement Quantities, FY2021-FY2025 
Under Navy’s FY2020 and FY2021 budget submissions 
Total 
FY2021-
 
FY21 
FY22 
FY23 
FY24 
FY25 
FY2025 
FY2020 budget 
1 
1 
2 
1 
1 
6 
FY2021 budget 
0 
0 
1 
2 
1 
4 
Difference 
-1 
-1 
-1 
+1 
— 
-2 
Source: Table prepared by CRS based on navy’s FY2020 and FY2021 budget submissions. 
Unit Procurement Cost 
The Navy’s FY2021 budget submission estimates that TAO-205s cost about $530 million each 
when they are procured at a rate of two per year. 
Builder 
TAO-205s are being built by General Dynamics/National Steel and Shipbuilding Company 
(GD/NASSCO) of San Diego, CA, a shipyard that builds Navy auxiliaries and DOD sealift ships. 
Block Buy Contract 
The first six TAO-205s are being procured under a block buy contract that was authorized by 
Section 127 of the FY2016 National Defense Authorization Act (S. 1356/P.L. 114-92 of 
November 25, 2015). It was earlier estimated that the block buy contract would reduce the 
procurement cost of the second through sixth TAO-205s by an average of about $45 million each, 
                                                 
10 David B. Larter and Aaron Mehta, “The Pentagon Is Eyeing a 500-Ship Navy, Documents Reveal,” Defense News, 
September 24, 2020. 
Congressional Research Service  
 
7 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
compared to costs under the standard or default DOD approach of annual contracting.11 The Navy 
states that about $35 million of the $45 million in per-ship savings will come from using advance 
procurement (AP) funding for batch-ordering TAO-205 components. The Navy states that this use 
of AP funding could have occurred under annual contracting, and that the savings that are 
intrinsic to the block buy contract are thus about $10 million per ship.12 
U.S. Content Requirement for Certain Components 
Section 8113(a) of the FY2020 Appropriations Act (Division A of 1158/P.L. 116-93 of December 
20, 2020) states the following: 
Sec. 8113. (a) None of the funds provided in this Act for the TAO Fleet Oiler program shall 
be  used  to  award  a  new  contract  that  provides  for  the  acquisition  of  the  following 
components  unless  those  components  are  manufactured  in  the  United  States:  Auxiliary 
equipment  (including  pumps)  for  shipboard  services;  propulsion  equipment  (including 
engines,  reduction  gears,  and  propellers);  shipboard  cranes;  and  spreaders  for  shipboard 
cranes. 
FY2021 Funding 
The Navy’s FY2021 budget requests $59.9 million in FY2021 cost-to-complete procurement 
funding to cover cost growth on TAO-205s procured in prior fiscal years, but it does not request 
any FY2021 funding for the procurement of additional TAO-205s. 
                                                 
11 The Senate Armed Services Committee, in its report (S.Rept. 114-49 of May 19, 2015) on the FY2016 National 
Defense Authorization Act (S. 1376), stated: 
Fleet replenishment oiler program (sec. 118) 
The committee recommends a provision [Section 118] that would grant the Secretary of the Navy 
contracting authority to procure up to six fleet replenishment oilers (T–AO(X)). This new ship class 
is a nondevelopmental recapitalization program based on existing commercial technology and 
standards. The ship design is considered to be low risk by the Navy, with the design scheduled to 
be complete prior to the start of construction on the lead ship. This provision would generate an 
estimated $45.0 million in savings per ship compared to annual procurement cost estimates. In 
addition, the provision would provide a long-term commitment to the shipbuilder and vendors, 
which would enable workforce stability and planning efficiency. (Pages 11-12) 
The committee print that includes the legislative text and joint explanatory statement for the enacted FY2016 National 
Defense Authorization Act (S. 1356/P.L. 114-92 of November 25, 2015) stated: 
Fleet replenishment oiler program (sec. 127) 
The Senate amendment contained a provision (sec. 118) that would grant the Secretary of the Navy 
contracting authority to procure up to six fleet replenishment oilers (T–AO (X)). This new ship 
class is a non-developmental recapitalization program based on existing commercial technology 
and standards. The ship design is considered to be low risk by the Navy, with the design scheduled 
to be complete prior to the start of construction on the lead ship. This provision would enable an 
estimated $45.0 million in savings per ship, for ships 2–6, for a total of $225.0 million in savings 
compared to current annual procurement cost estimates. 
(114th Congress, 1st Session, Committee Print No. 2, National Defense Authorization Act for Fiscal 
Year 2016, Legislative Text and Joint Explanatory Statement to accompany S. 1356, P.L. 114-92, 
November 2015, Printed for the use of the Committee on Armed Services of the House of 
Representatives, p. 608) 
For more on block buy contracts, see CRS Report R41909, Multiyear Procurement (MYP) and Block Buy Contracting 
in Defense Acquisition: Background and Issues for Congress, by Ronald O'Rourke and Moshe Schwartz. 
12 Source: Navy briefing on TAO-205 program for CRS and CBO, April 12, 2019. 
Congressional Research Service  
 
8 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Issues for Congress 
Potential Impact of COVID-19 Situation 
One issue for Congress concerns the potential impact of the COVID-19 situation on the execution 
of U.S. military shipbuilding programs, including the TAO-205 program. For additional 
discussion of this issue, see CRS Report RL32665, Navy Force Structure and Shipbuilding Plans: 
Background and Issues for Congress, by Ronald O'Rourke. 
Number of TAO-205s to Procure in FY2021 
One issue for Congress is whether to fund the procurement in FY2021 of no TAO-205 class ship 
(as requested by the Navy), or one TAO-205 class ship (as was projected for FY2021 under the 
Navy’s FY2020 budget submission), or two TAO-205s (as were procured in in FY2020 and also 
in FY2019). In assessing this issue, Congress may consider various factors, including the 
following: 
  the expected service lives and scheduled retirement dates of the existing TAO-
187 class oilers; 
  construction times for new TAO-205s; 
  potential changes in the required number of oilers (see next section); 
  shipyard workloads and employment levels at NASSCO; 
  potential cost impacts (including shipyard and supplier firm production learning 
curve impacts) of procuring or not procuring one or two TAO-205s in FY2021; 
  the amount of funding that would be needed to procure one or two TAO-205s in 
FY2021; and 
  competing Navy or other DOD uses for such funding. 
Required Number of Oilers 
Another issue for Congress concerns the number of oilers the Navy will require in coming years 
to support its operations. The Navy is implementing a new operational concept, called Distributed 
Maritime Operations (DMO), that could lead to the development of a fleet with larger numbers of 
individually smaller ships, and to more-widely dispersed Navy operations. DMO could affect 
requirements for Navy logistics, including oilers. The Navy states that 
Recapitalizing the auxiliary and sealift fleet in support of DMO has become a top priority. 
The  initial  reviews  of  the  requirements  to  support  this  operational  maritime  concept 
indicate potential growth across the five lines of effort: refuel, rearm, resupply, repair, and 
revive. Coincident is the review of the level of effort needed to distribute logistics into a 
contested  maritime  environment  following  safe  transfer  by  the  logistics  fleet—smaller, 
faster, multi-mission transports likely resident within the future battle force. The work to 
fully flesh out the requirement is ongoing, but the aggregate is expected to be no less than 
the current requirement, reinforcing the urgency to recapitalize the current fleet.13 
As discussed earlier, on October 6, 2020, Secretary of Defense Mark Esper provided some details 
on the Trump Administration’s new Navy force-level goal, which it calls Battle Force 2045. This 
                                                 
13 U.S. Navy, Report to Congress on the Annual Long-Range Plan for Construction of Naval Vessels for Fiscal Year 
2020, March 2019, p. 24. 
Congressional Research Service  
 
9 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
new force-level goal calls for achieving a fleet of more than 500 manned and unmanned ships by 
2045, including 355 manned ships prior to 2035.  In his remarks, Esper stated: “Initial estimates 
identify the need for … 70 to 90 combat logistic ships [of all types]. But further work is 
underway to determine if the number of logistic [ships] forecasted in this report are sufficient for 
the future fight.”14 
A total of 70 to 90 CLF ships would be 38 to 58 more CLF ships than the 32 such ships that are 
included in the Navy’s current 355-ship force-level objective. Of the additional 38 to 58 CLF 
ships, some (perhaps many) would be new, smaller CLF ships, called that the Medium Logistics 
Ships, that Navy plans currently envisage, and for which the Navy has requested initial research 
and development funding as part of its proposed FY2021 budget. It is also possible, however, that 
some of the 38 to 58 additional CLF ships would be additional TAO-205s. If so, the adoption of 
Battle Force 2045 as the Navy’s new force-level goal could increase the planned number of TAO-
205s from 20 to some higher number. A September 24, 2020, press report about studies done in 
April 2020 as part of the effort to develop Battle Force 2045 stated that the studies recommended 
increasing the Navy’s force-level goal for fleet oilers (i.e., ships like TAO-205s) to a total of 21 to 
31.15 
An August 2017 GAO report states the following: 
The readiness of the surge sealift and combat logistics fleets has trended downward since 
2012. For example, GAO found that mission-limiting equipment casualties—incidents of 
degraded  or  out-of-service  equipment—have  increased  over  the  past  5  years,  and 
maintenance  periods  are  running  longer  than  planned,  indicating  declining  materiel 
readiness across both fleets.... 
The Navy has not assessed the effects of widely distributed operations, which could affect 
the  required  number  and  type  of  combat  logistics  ships.  The  Navy  released  its  new 
operational  concept  of  more  widely  distributed  operations—ships  traveling  farther 
distances and operating more days to support a more distributed fleet—in 2017. The Navy 
has  not  assessed  the  effects  that  implementing  this  concept  will  have  on  the  required 
number and type of combat logistics ships. These effects could be exacerbated in the event 
that  the  Navy  is  less  able  to  rely  on  in-port  refueling—which  has  comprised  about  30 
percent  of  all  refuelings  over  the  past  3  years—placing  greater  demand  on  the  combat 
logistics fleet. Given the fleet’s dependence on the combat logistics force, waiting until 
2019  or  2020  to  conduct  an  assessment,  as  planned,  could  result  in  poor  investment 
decisions  as  the  Navy  continues  to  build  and  modernize  its  fleet.  Furthermore,  without 
assessing the effects of widely distributed operations on logistics force requirements and 
modifying its force structure plans accordingly, the Navy risks being unprepared to provide 
required fuel and other supplies.16 
Issues Discussed in June 2020 GAO Report 
A June 2020 Government Accountability Office (GAO) report—the 2020 edition of an annual 
GAO report assessing major DOD acquisition programs—stated the following about the TAO-
205 program: 
                                                 
14 Department of Defense, “Secretary Of Defense Remarks at CSBA [Center for Strategic and Budgetary Assessments] 
on the NDS [National Defense Strategy] and Future Defense Modernization Priorities,” transcript of remarks, October 
6, 2020. 
15 David B. Larter and Aaron Mehta, “The Pentagon Is Eyeing a 500-Ship Navy, Documents Reveal,” Defense News, 
September 24, 2020. 
16 Government Accountability Office, Navy Readiness[:] Actions Needed to Maintain Viable Surge Sealift and Combat 
Logistics Fleets, GAO-17-503, August 2017, summary page. 
Congressional Research Service  
 
10 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Technology Maturity, Design Stability, and Production Readiness 
All  Lewis  class  critical  technologies  are  mature  and  the  design  is  stable.  The  critical 
technologies were all determined to be mature based on prototype testing conducted before 
detail design contract award—an approach consistent with best practices. 
Lead ship construction began in September 2018 with 95 percent of the ship’s total design 
effort,  including  the  basic  and  functional  design,  complete—also  consistent  with  best 
practices. Throughout detail design and now into construction, the Navy has not changed 
the  Lewis  class  program’s  performance  requirements.  The  Navy  also  leveraged 
commercial  vessel  designs  to  minimize  design  and  construction  risks.  The  Lewis  class 
features a  modern double-hull construction, an environmental-based design standard for 
commercial tankers, to ensure the ships can dock at ports-of-call. 
According to the program office, as of January 2020, lead ship construction was 65 percent 
complete  and  second  ship  construction  was  less  than  10  percent  complete.  Both  ships 
experienced cost growth primarily due to quantity increases but also due to higher-than-
forecast overhead and labor costs; increasing costs of steel and vendor components; and, 
according to officials, a small amount of cybersecurity related design cost growth. 
Delivery  of  the  lead  ship  has  slipped  by  7  months  from  November  2020  to  June  2021. 
Program officials stated that the delay is primarily due to late delivery of the ship’s main 
reduction  gear  and  delays  by  the  subsidiary  of  the  contractor.  A  tool  for  transporting 
reduction  gears  from  a  heat  treatment  cracked  and  needed  to  be  replaced,  causing  the 
reduction  gear  delay.  According  to  program  officials,  the  flooding  of  a  graving  dock  in 
2018  shifted  ship  construction  schedules  and  accelerated  construction  in  certain  trades, 
such as pipefitting. This increased production demand for additional pipes and vents that 
one subsidiary has been unable to meet and has negatively impacted the schedule for both 
the lead and second ships. In addition, while repairs are being planned and implemented, 
the graving dock’s unavailability has disrupted the contractor’s schedule for future ships. 
According to the program office, the flooding incident resulted in an average of 5- to 12-
month delays to the delivery dates for ships two through six. As a result of these delays, 
the Lewis class will not meet its initial operational capability (IOC) date of January 2022. 
The revised IOC date is now August 2022. 
Software and Cybersecurity 
The program is using off-the-shelf software systems tailored for the T-AO 205 design and 
did not collect details of its software development costs or activities. 
With  regard  to  cybersecurity,  the  program  conducted  its  first  cyber  tabletop  test—an 
exercise used to assess the probability of success for attackers—in January 2018. Based on 
the  results,  the  program  has  another  cyber  test  scheduled  in  January  2020,  which  will 
include several of the ship’s linked subsystems. The program reported it has experienced 
increases  in  costs  related  to  meeting  cybersecurity  requirements.  Specifically,  officials 
reported that in March 2019, the program began making modifications to the contract to 
address cyber requirements that were not in effect at the 2016 contract award. The changes 
are expected to cost approximately $7.4 million over the first six ships, an amount that will 
be reflected in the program’s forthcoming revised acquisition program baseline. 
Other Program Issues 
As part of the Navy’s plan to expand the fleet, the Navy concluded in fiscal year 2019 that 
it would need an additional three Lewis class ships. To date, the Navy has procured six of 
the 20 ships the Navy plans to purchase. In addition to these six ships, the Navy plans to 
add one  more ship to the low-rate initial production phase  via a  modification to  what it 
refers to as the “block buy” contract. Program officials stated they plan to competitively 
award the remaining 13 ships, likely awarding contracts to more than one contractor. The 
program plans to use the same design for these 13 remaining ships. 
Congressional Research Service  
 
11 
 link to page 24  link to page 16 Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Program Office Comments 
We provided a draft of this assessment to the program office for review and comment. The 
program office provided technical comments, which we incorporated where appropriate. 
The  program  office  stated  that  the  lead  ship’s  delivery  initially  slipped  due  to  the  late 
delivery of main engines and reduction gear, but was further impacted by the late delivery 
of  outfitting  material.  The  program  office  also  stated  the  fiscal  year  2021  President’s 
budget submission removes the planned procurement of one ship each in fiscal years 2021 
and 2022 but does not impact the six-ship “block buy” contract. The program office noted 
that the Navy plans to procure a seventh ship through the  existing six-ship  “block buy” 
contract in fiscal year 2022. The program office further noted that the revised acquisition 
program baseline is complete and reflects the planned update to the total number of ships.17 
TAO-205 Ship Self-Defense Equipment 
Another issue for Congress is whether to encourage or direct the Navy to build TAO-205s with 
more ship self-defense equipment than currently planned by the Navy. The issue relates to how 
changes in the international security environment might affect how the Navy operates and equips 
its underway replenishment ships. For additional background information on this issue, see 
Appendix A. 
Legislative Activity for FY2021 
Summary of Congressional Action on FY2021 Funding 
Table 2 summarizes congressional action on the Navy’s request for FY2021 funding for 
procurement of additional TAO-205s. (It consequently does not show the Navy’s request for 
$59.9 million in cost-to-complete procurement funding to cover cost growth on TAO-205s 
procured in prior fiscal years.) 
Table 2. Congressional Action on FY2021 Funding for Additional TAO-205s 
Millions of dollars, rounded to nearest tenth 
Authorization 
Appropriation 
 
Request 
HASC 
SASC 
Conf. 
HAC 
SAC 
Conf. 
Procurement 
0 
0 
0 
0 
20.0 
0 
20.0 
Advance procurement (AP) 
0 
0 
0 
0 
0 
0 
0 
(Quantity) 
(0) 
(0) 
(0) 
(0) 
(0) 
(0) 
(0) 
Source: Navy FY2021 budget submission, committee and conference reports, and explanatory statements on 
FY2021 National Defense Authorization Act and FY2021 DOD Appropriations Act. 
Notes: HASC is House Armed Services Committee; SASC is Senate Armed Services Committee; HAC is 
House Appropriations Committee; SAC is Senate Appropriations Committee; Conf. is conference agreement. 
                                                 
17 Government Accountability Office, Defense Acquisitions Annual Assessment[:] Drive to Deliver Capabilities Faster 
Increases Importance of Program Knowledge and Consistent Data for Oversight, GAO-20-439, p. 142. 
Congressional Research Service  
 
12 
 link to page 16  link to page 16 Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
FY2021 National Defense Authorization Act (H.R. 6395/S. 4049) 
House 
The House Armed Services Committee, in its report (H.Rept. 116-442 of July 9, 2020) on H.R. 
6395, recommended the funding levels shown in the HASC column of Table 2. 
Section 823 of H.R. 6395 as reported by the committee states: 
SEC.  823.  REQUIREMENT  THAT  CERTAIN  SHIP  COMPONENTS  BE 
MANUFACTURED IN THE NATIONAL TECHNOLOGY AND INDUSTRIAL BASE. 
(a) TECHNICAL AMENDMENT.—The second subsection (k) of section 2534 of title 10, 
United States Code (relating to Implementation of Auxiliary Ship Component Limitation), 
is redesignated as subsection (l). 
(b)  COMPONENTS  FOR  AUXILIARY  SHIPS.—Section  2534(a)  of  title  10,  United 
States Code, is amended by adding at the end the following new paragraph: 
‘‘(6)  COMPONENTS  FOR  AUXILIARY  SHIPS.—Subject  to  subsection  (l),  the 
following components: 
‘‘(A) Large medium-speed diesel engines. 
‘‘(B) Auxiliary equipment, including pumps, for all shipboard services. 
‘‘(C) Propulsion system components, including engines, reduction gears, and propellers. 
‘‘(D) Shipboard cranes. 
‘‘(E) Spreaders for shipboard cranes.’’. 
(c) IMPLEMENTATION.—Subsection (l) of section 2534 of title 10, United States Code, 
as redesignated by subsection (a), is amended— 
(1) by redesignating the second sentence to appear as flush text at the end; 
(2)  by  striking  ‘‘auxiliary  ship  after  the  date’’  and  inserting  the  following:  ‘‘auxiliary 
ship— 
‘‘(1) with respect to large medium-speed diesel engines described under subparagraph (A) 
of such subsection, after the date’’; 
(3) in paragraph (1) (as so designated), by striking ‘‘Navy.’’ and inserting ‘‘Navy; and’’; 
and 
(4) by inserting after paragraph (1) (as so designated) the following new paragraph: 
‘‘(2)  with  respect  to  components  listed  in  subparagraphs  (B)  through  (E)  of  such 
subsection, after the date of the enactment of the National Defense Authorization Act for 
Fiscal  Year  2021  using  funds  available  for  National  Defense  Sealift  Fund  programs  or 
Shipbuilding and Conversion, Navy.’’. 
Senate (Committee Report) 
The Senate Armed Services Committee, in its report (S.Rept. 116-236 of June 24, 2020) on S. 
4049, recommended the funding levels shown in the SASC column of Table 2. 
Section 812 of S. 4049 as reported by the committee states: 
SEC. 812. MISCELLANEOUS LIMITATIONS ON THE PROCUREMENT OF GOODS 
OTHER THAN UNITED STATES GOODS. 
Congressional Research Service  
 
13 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Section 2534 of title 10, United States Code, is amended— 
(1) in subsection (a)— 
(A) by striking paragraphs (2) through (5);  
(B) by inserting after paragraph (1) the following new paragraph: 
‘‘(2) COMPONENTS FOR NAVAL VESSELS.— 
‘‘(A) Vessel propellers with a diameter of six feet or more. 
‘‘(B)  The  following  components  of  vessels,  to  the  extent  they  are  unique  to  marine 
applications:  gyrocompasses,  electronic  navigation  chart  systems,  steering  controls, 
propulsion and machinery control systems, and totally enclosed lifeboats.’’; 
(C) by redesignating paragraph (6) as paragraph (3); and 
(D) in paragraph (3), as redesignated by subparagraph (C), by striking ‘‘(k)’’ and inserting 
‘‘(j)’’; 
(2) in subsection (b)— 
(A) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and 
(B) in paragraph (2), as redesignated by subparagraph (A), by striking ‘‘subsection 
(a)(3)(A)(iii)’’ and inserting ‘‘subsection (a)(2)(A)’’; 
(3) in subsection (c)— 
(A) by striking ‘‘ITEMS.’’ and all that follows through ‘‘Subsection (a) does not apply’’ 
in paragraph (1) and inserting ‘‘ITEMS.—Subsection (a) does not apply’’; and 
(B) by striking paragraphs (2) though (5); 
(4) in subsection (g)— 
(A) by striking ‘‘(1) This section’’ and inserting ‘‘This section’’; and 
(B) by striking paragraph (2); 
(5)  in  subsection  (h),  by  striking  ‘‘subsection  (a)(3)(B)’’  and  inserting  ‘‘subsection 
(a)(2)(B)’’; 
(6) in subsection (i)(3), by striking ‘‘Acquisition, Technology, and Logistics’’ and inserting 
‘‘Acquisition and Sustainment’’; 
(7)  by  striking  subsection  (j);  and  (8)  by  redesignating  the  first  subsection  designated 
subsection (k) as subsection (j). 
Section 1025 of S. 4049 as reported by the committee states (emphasis added): 
SEC. 1025. SENSE OF CONGRESS ON ACTIONS NECESSARY TO ACHIEVE A 355-
SHIP NAVY. 
It is the sense of Congress that to achieve the national policy of the United States to have 
available, as soon as practicable, not fewer than 355 battle force ships— 
(1) the Navy must be adequately resourced to increase the size of the Navy in accordance 
with  the  national  policy,  which  includes  the  associated  ships,  aircraft,  personnel, 
sustainment, and munitions; 
(2) across fiscal years 2021 through 2025, the Navy should start construction on not 
fewer than— 
(A) 12 Arleigh Burke-class destroyers; 
Congressional Research Service  
 
14 
 link to page 16 Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
(B) 10 Virginia-class submarines; 
(C) 2 Columbia-class submarines; 
(D) 3 San Antonio-class amphibious ships; 
(E) 1 LHA-class amphibious ship; 
(F) 6 John Lewis-class fleet oilers; and 
(G) 5 guided missile frigates; 
(3) new guided missile frigate construction should increase to a rate of between two and 
four ships per year once design maturity and construction readiness permit; 
(4) the Columbia-class submarine program should be funded with additions to the Navy 
budget significantly above the historical average, given the critical single national mission 
that  these  vessels  will  perform  and  the  high  priority  of  the  shipbuilding  budget  for 
implementing the National Defense Strategy; 
(5)  stable  shipbuilding  rates  of  construction  should  be  maintained  for  each  vessel  class, 
utilizing multi-year or block buy contract authorities when appropriate, until a deliberate 
transition plan is identified; and 
(6)  prototyping  of  potential  new  shipboard  sub  systems  should  be  accelerated  to  build 
knowledge  systematically,  and,  to  the  maximum  extent  practicable,  shipbuilding 
prototyping should occur at the subsystem-level in advance of ship design. 
Senate (Floor Consideration) 
On June 29, 2020, the chairman of the Senate Armed Services Committee, Senator Inhofe, 
proposed Senate Amendment 2301, an amendment in the nature of a substitute. This amendment 
would, among other things, amend S. 4049 to add Section 5812, which states: 
SEC.  5812.  MISCELLANEOUS  LIMITATIONS  ON  THE  PROCUREMENT  OF 
GOODS OTHER THAN UNITED STATES GOODS. 
Notwithstanding the amendments made by section 812-- 
(1) the subparagraph (A) proposed to be included in subsection (a)(2) of section 2534 of 
title 10, United States Code, shall not be included; 
(2) subsection (b) of such section is deemed to read as follows: 
``(b) Manufacturer in the National Technology and Industrial Base.--A manufacturer meets 
the requirements of this subsection if the manufacturer is part of the national technology 
and industrial base.''; and 
(3)  the  amendment  to  subsection  (h)  of  such  section  is  deemed  to  insert  the  following: 
``subsection (a)(2)''. 
Conference 
The conference report (H.Rept. 116-617 of December XX, 2020) on H.R. 6395 recommended the 
funding levels shown in the authorization conference column of Table 2. 
Section 845 of the conference version of H.R. 6395 states: 
SEC. 845. MISCELLANEOUS LIMITATIONS ON THE PROCUREMENT OF GOODS 
OTHER THAN UNITED STATES GOODS. 
(a) IN GENERAL.—Section 2534 of title 10, United States Code, is amended— 
(1) in subsection (a)— 
Congressional Research Service  
 
15 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
(A) by striking paragraphs (2) through (5) and redesignating paragraph (6) as paragraph 
(3); 
(B) by inserting after paragraph (1) the following new paragraph: 
‘‘(2) COMPONENTS FOR NAVAL VESSELS.—The following components of vessels, 
to the extent they are unique to marine applications: 
‘‘(A) Gyrocompasses. 
‘‘(B) Electronic navigation chart systems. 
‘‘(C) Steering controls. 
‘‘(D) Propulsion and machinery control systems. 
‘‘(E) Totally enclosed lifeboats.’’; 
(C)  in  paragraph  (3),  as  so  redesignated,  by  striking  ‘‘subsection  (k)’’  and  inserting 
‘‘subsection (j)’’; and 
(D) by adding at the end the following new paragraph: 
‘‘(4) COMPONENTS FOR T–AO 205 CLASS VESSELS.—The following components 
of T–AO 205 class vessels: 
‘‘(A) Auxiliary equipment, including pumps, for all shipboard services. 
‘‘(B) Propulsion system components, including engines, reduction gears, and propellers. 
‘‘(C) Shipboard cranes. 
‘‘(D) Spreaders for shipboard cranes.’’; 
(2) by amending subsection (b) to read as follows: 
‘‘(b)  MANUFACTURER  IN  THE  NATIONAL  TECHNOLOGY  AND  INDUSTRIAL 
BASE.—A manufacturer meets the requirements of this subsection if the manufacturer is 
part of the national technology and industrial base.’’; 
(3) in subsection (c)— 
(A) by striking ‘‘ITEMS.—’’ and all that follows through ‘‘Subsection (a) does not apply’’ 
and inserting ‘‘ITEMS.—Subsection (a) does not apply’’; and 
(B) by striking paragraphs (2) though (5); 
(4) in subsection (g)— 
(A) by striking ‘‘(1) This section’’ and inserting ‘‘This section’’; and 
(B) by striking paragraph (2); 
(5) in subsection (h), by striking ‘‘subsection (a)(3)(B)’’ and inserting ‘‘subsection (a)(2)’’; 
(6)  in  subsection  (i)(3),  by  striking  ‘‘Under  Secretary  of  Defense  for  Acquisition, 
Technology, and Logistics’’ and inserting  ‘‘Under Secretary of Defense  for  Acquisition 
and Sustainment’’; 
(7) by striking subsection (j); 
(8) by redesignating the first subsection designated subsection (k) (relating to ‘‘Limitation 
on Certain Procurements Application Process’’) as subsection (j); and 
(9)  in  subsection  (k)  (relating  to  ‘‘Implementation  of  Auxiliary  Ship  Component 
Limitation’’), by striking ‘‘Subsection (a)(6)’’ and inserting ‘‘Subsection (a)(3)’’. 
Congressional Research Service  
 
16 
 link to page 16 Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
(b) REVIEW OF SELECT COMPONENTS.—The Secretary of the Defense shall expedite 
the review period under paragraph (3)(B) of section 2534(j) of title 10, United States Code, 
as  redesignated  by  subsection  (a),  to  not  more  than  60  days  for  applications  submitted 
pursuant to such section 2534(j) for the following components for auxiliary ships: 
(1) Auxiliary equipment, including pumps, for all shipboard services. 
(2) Propulsion system components, including engines, reduction gears, and propellers. 
(3) Shipboard cranes. 
(4) Spreaders for shipboard cranes. 
Regarding Section 845, the conference report states: 
Miscellaneous  limitations  on  the  procurement  of  goods  other  than  United  States  goods 
(sec. 845) 
The House bill contained a provision (sec. 823) that would require that certain shipboard 
components be manufactured in the National Technology and Industrial Base. 
The Senate amendment contained similar provisions (sec. 812 and sec. 5812) that would 
amend section 2534 of title 10, United States Code, related to miscellaneous limitations on 
the procurement of goods. 
The  House  recedes  with  an  amendment  that  would  require  that  certain  T-AO  205  class 
components be manufactured in the National Technology and Industrial Base and require 
the expedited review of certain applications submitted pursuant to section 2534 of title 10, 
United States Code. (PDF pages 3954-3955 of 4517) 
The conference report also states: 
Sense of Congress on actions necessary to achieve a 355-ship Navy 
The Senate amendment contained a provision (sec. 1025) that would express the sense of 
Congress  on  actions  necessary  to  implement  the  national  policy  of  the  United  States  to 
have available, as soon as practicable, not fewer than 355 battle force ships. 
The House bill contained no similar provision. 
The Senate recedes. (PDF page 4024 of 4517) 
FY2021 DOD Appropriations Act (H.R. 7617/S. XXXX/Division C of 
H.R. 133) 
House 
The House Appropriations Committee, in its report (H.Rept. 116-453 of July 16, 2020) on H.R. 
7617, recommended the funding levels shown in the HAC column of Table 2. The recommended 
increase of $20.0 million in procurement funding is for “Program increase—affordability 
initiatives.” (Page 184) Regarding this funding recommendation, H.Rept. 116-453 states: 
TAO FLEET OILER PROGRAM 
The Committee recognizes that Navy TAO Fleet Oilers are essential for providing fuel to 
deployed  ships,  allowing  them  and  their  embarked  aircraft  to  remain  combat  ready  and 
extending the reach of  naval  forces  worldwide. However,  while  the Committee remains 
supportive of the TAO Fleet Oiler program, it understands there are long term affordability 
concerns with the program due to aggregate capability and material choices made during 
the post-contract award phase. The Committee also believes that ship costs must be reduced 
in  order  to  build  the  required  fleet  of  ships.  Therefore,  the  Committee  recommendation 
Congressional Research Service  
 
17 
 link to page 16  link to page 16 Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
includes  $20,000,000  for  non-recurring  engineering  costs  to  execute  cost  reduction 
initiatives and requirements changes that should be inserted into the TAO design as soon 
as practical. 
Additionally,  the  Committee  directs  the  Secretary  of  the  Navy  to  submit  a  report  to  the 
congressional defense committees not later than 45 days after the enactment of this  Act 
that  details  how  these  changes  will  be  implemented  and  the  savings  they  will  produce. 
(Page 185) 
Section 8104(a) of H.R. 7617 as reported by the committee states: 
Sec. 8104.  (a) None of the funds provided in this Act for the TAO Fleet Oiler program 
shall  be  used  to  award  a  new  contract  that  provides  for  the  acquisition  of  the  following 
components  unless  those  components  are  manufactured  in  the  United  States:  Auxiliary 
equipment  (including  pumps)  for  shipboard  services;  propulsion  equipment  (including 
engines,  reduction  gears,  and  propellers);  shipboard  cranes;  and  spreaders  for  shipboard 
cranes. 
Regarding Section 8104(a) and certain other provisions, H.Rept. 116-453 states: 
DOMESTIC MANUFACTURING REQUIREMENTS FOR NAVY SHIPBUILDING 
The Committee consistently has expressed its concern with the Department of the Navy 
sourcing surface ship components from foreign industry partners rather than promoting a 
robust domestic industrial base. To address these concerns, the Committee retains several 
provisions  from  fiscal  year  2020  and  a  new  provision  that  expands  the  domestic 
manufacturing  requirement  for  several  classes  of  ships  under  development.  Absent 
stringent contract requirements in these future surface ship classes, the Committee lacks 
confidence  that  the  Navy  will  make  the  necessary  decisions  and  provide  the  required 
resources to support a robust domestic industrial base. (Page 13) 
Senate 
The Senate Appropriations Committee, in the explanatory statement for S. XXXX that the 
committee released on November 10, 2020, recommended the funding levels shown in the SAC 
column of Table 2. 
Section 8108(a) of the bill as released by the committee on November 10, 2020, states: 
SEC. 8108. (a) None of the funds provided in this Act for the TAO Fleet Oiler program 
shall  be  used  to  award  a  new  contract  that  provides  for  the  acquisition  of  the  following 
components  unless  those  components  are  manufactured  in  the  United  States:  Auxiliary 
equipment  (including  pumps)  for  shipboard  services;  propulsion  equipment  (including 
engines,  reduction  gears,  and  propellers);  shipboard  cranes;  and  spreaders  for  shipboard 
cranes. 
Conference 
The explanatory statement for the final version of the FY2021 DOD Appropriations Act (Division 
C of the final version of H.R. 133, the Consolidated Appropriations Act, 2021) provides the 
funding levels shown in the SAC column of Table 2. The increase of $20.0 million from the 
requested amount is for “Program increase—affordability initiatives.” (PDF page 204 of 469) 
Section 8113(a) of Division C of H.R. 133 states: 
SEC. 8113. (a) None of the funds provided in this Act for the TAO Fleet Oiler program 
shall  be  used  to  award  a  new  contract  that  provides  for  the  acquisition  of  the  following 
components  unless  those  components  are  manufactured  in  the  United  States:  Auxiliary 
equipment  (including  pumps)  for  shipboard  services;  propulsion  equipment  (including 
Congressional Research Service  
 
18 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
engines, reduction gears, and propellers); shipboard cranes; and spreaders for shipboard 2 
cranes. 
 
 
Congressional Research Service  
 
19 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
Appendix A. TAO-205 Ship Self-Defense 
Equipment 
This appendix provides additional background information on the issue of whether to encourage 
or direct the Navy to build TAO-205s with more ship self-defense equipment than currently 
planned by the Navy. 
During the Cold War, the Navy procured underway replenishment ships to support a two-stage 
approach to underway replenishment in which single-product “shuttle” ships (such as oilers, 
ammunition ships, and dry stores ships) would take their supplies from secure ports to relatively 
safe midocean areas, where they would then transfer them to multiproduct “station” ships called 
TAOEs and AORs. The TAOEs and AORs would then travel to Navy carrier strike groups 
operating in higher-threat areas and transfer their combined supplies to the carrier strike group 
ships. As a result, single-product shuttle ships were equipped with lesser amounts of ship self-
defense equipment, and TAOEs and AORs were equipped with greater amounts of such 
equipment. 
When the Cold War ended and transitioned to the post-Cold War era, threats to U.S. Navy ships 
operating at sea were substantially reduced. As a consequence, the amount of ship self-defense 
equipment on the TAOEs and AORs was reduced, and a single-stage approach to underway 
replenishment, in which oilers and dry stores ships took supplies from secure ports all the way to 
carrier strike group ships, was sometimes used. 
Now that the post-Cold War era has transitioned to a new strategic environment featuring 
renewed great power competition with countries like China and Russia,18 and a consequent 
renewal of potential threats to U.S. Navy ships operating at sea, the question is whether TAO-
205s should be equipped with lesser amounts of ship self-defense equipment, like oilers were 
during both the Cold War and post-Cold War eras, or with greater amounts of ship self-defense 
equipment, like TAOEs and AORs were during the Cold War. Building TAO-205s with more ship 
self-defense equipment than currently planned by the Navy could increase TAO-205 procurement 
costs by tens of millions of dollars per ship, depending on the amount of additional ship self-
defense equipment. 
Section 1026 of the FY2016 National Defense Authorization Act (S. 1356/P.L. 114-92 of 
November 25, 2015) required an independent assessment of the Navy’s combat logistics force 
ships. The report was delivered to Congress in February 2016. A copy of the report was posted by 
the media outlet Politico on March 11, 2016. The report states the following: 
The T-AO(X) will only have a limited capability to defeat a submarine launched torpedo 
attack and no capability to defeat a missile attack. When delivered, the TAO(X) will have: 
—[the] NIXIE Torpedo Countermeasure System [for decoying certain types of torpedoes] 
—[the]  Advanced  Degaussing  System  (Anti-Mine)  [for  reducing  the  ship’s  magnetic 
signature, so as to reduce the likelihood of attack by magnetically fused mines] 
When required, the T-AO(X) will also have ability to embark Navy Expeditionary Combat 
Command Expeditionary Security Teams (EST). The ESTs will embark with several crew 
served  weapons  and  are  designed  to  provide  limited  self-defense  against  a  small  boat 
attack. 
                                                 
18 For more on this transition, see CRS Report R43838, A Shift in the International Security Environment: Potential 
Implications for Defense—Issues for Congress, by Ronald O'Rourke. 
Congressional Research Service  
 
20 
Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program 
 
The T-AO(X) will have Space, Weight, Power and Cooling (SWAP-C) margins for future 
installations of the following systems: 
—[the]  Close  In  Weapon  System  (CIWS)  or  SeaRAM  (Rolling  Airframe  Missile)  [for 
defense against missile attack] 
—[the] Anti-Torpedo Torpedo Defense System (ATTDS) [for destroying torpedoes] 
Even after the installation of a CIWS or ATTDS, if the T-AO(X) was to operate in anything 
other than a benign environment, the ship will require both air and surface escorts. 
The decision to rely on [other] Fleet assets to provide force protection [i.e., defense against 
attacks] for the T-AO(X) was validated by the JROC [in June 2015].19 
 
 
Author Information 
 
Ronald O'Rourke 
   
Specialist in Naval Affairs 
    
 
 
Disclaimer 
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan 
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and 
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other 
than public understanding of information that has been provided by CRS to Members of Congress in 
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not 
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in 
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or 
material from a third party, you may need to obtain the permission of the copyright holder if you wish to 
copy or otherwise use copyrighted material. 
 
                                                 
19 Department of the Navy, Report to Congress on Requirements for the Fleet Replenishment Oiler, T-AO(X), February 
2016 (with cover letter dated February 12, 2016), p. 8. The report was posted by Politico on March 11, 2016, at 
http://static.politico.com/1e/e0/f26a9fb1471aacd5358c420fcf10/navy-oiler-report.pdf, and accessed by CRS on March 
15, 2016. 
Congressional Research Service  
R43546 · VERSION 80 · UPDATED 
21