Navy John Lewis (TAO-205) Class Oiler
Shipbuilding Program: Background and
Issues for Congress
Updated July 11, 2024
Congressional Research Service
https://crsreports.congress.gov
R43546

Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program

Summary
The Navy procured its first John Lewis (TAO-205) class oiler in FY2016, and a total of 10 have
been procured through FY2024. The first six were procured under a block buy contract
authorized by Section 127 of the FY2016 National Defense Authorization Act (NDAA) (S.
1356/P.L. 114-92 of November 25, 2015). TAO-205s are being built by General
Dynamics/National Steel and Shipbuilding Company (GD/NASSCO) of San Diego, CA. The first
TAO-205 was delivered to the Navy on July 26, 2022, and the second was delivered on July 11,
2023.
Current Navy plans call for procuring a total of 20 TAO-205s. The Navy’s FY2025 budget
submission programs the procurement of the next two TAO-205s (which would be the 11th and
12th ships in the class) for FY2026, and does not request any funding for FY2025 for the
procurement of additional TAO-205s. The Navy’s proposed FY2025 budget does request $227.2
million in cost-to-complete funding to cover cost growth on TAO-205s procured in prior fiscal
years.
Section 128 of the FY2023 NDAA (H.R. 7776/P.L. 117-263 of December 23, 2022) provides
authority for the Navy during FY2023 and FY2024 to use multiyear contracting to procure not
more than eight TAO-205s. Using multiyear contracting in the form of a multiyear procurement
(MYP) contract would require additional approval in a DOD appropriations act. Using multiyear
contracting in the form of a block buy contract would not require additional approval in a DOD
appropriations act—the authorization provided by Section 128 of the FY2023 NDAA would be
sufficient for using a block buy contract.
Issues for Congress include the following:
• cost growth and schedule delays in the TAO-205 program;
• whether to procure in FY2025 no TAO-205 class ship (as programmed in the
Navy’s FY2025 budget submission), one TAO-205 class ship, or two TAO-205
class ships;
• whether to procure TAO-205s in FY2024 and subsequent years under MYP or
block buy contract;
• issues regarding the TAO-205 program discussed in a June 2024 Government
Accountability Office (GAO) report and a January 2024 Director of Operational
Test and Evaluation (DOT&E) report; and
• whether to encourage or direct the Navy to build TAO-205s with more ship self-
defense equipment than currently planned by the Navy.
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Appendixes
Appendix A. TAO-205 Ship Self-Defense Equipment .................................................................. 17

Contacts
Author Information ........................................................................................................................ 18

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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 issue for Congress is whether to approve, reject, or modify the Navy’s annual ship
authorization and funding requests and acquisition strategy for the program. Congress’s decisions
on this issue could affect Navy capabilities and funding requirements and the U.S. shipbuilding
industrial base.
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
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.

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.)
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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.
TAO Designation
Navy fleet oilers carry the designation TAO (also typed as T-AO). The T means the ship is
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.
Existing Kaiser (TAO-187) Class Oilers
The Navy’s older fleet oilers—the ships that are to be replaced by TAO-205s—are Henry J.
Kaiser (TAO-187) class ships (Figure 4), or Kaiser-class oilers for short.3 The Kaiser-class oilers
were procured between FY1982 and FY1989 and entered service between 1986 and 1996. 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

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.
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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.) Kaiser-class oilers have an expected service life of 35 years; the first ship in the class
reached that age in 2021. Fourteen Kaiser-class oilers remained in service as of the end of
FY2023, and the Navy’s FY2025 30-year (FY2025-FY2054) shipbuilding plan calls for retiring
seven of them during the period FY2025-FY2029.
Figure 2. Fleet Oiler Conducting an UNREP

Source: Cropped version of 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.
Figure 3. Fleet Oiler Conducting an UNREP

Source: Cropped version of 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,
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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.
Figure 4. Kaiser (TAO-187) Class Fleet Oiler

Source: Cropped version of 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.)
TAO-205 Program
Program Name
TAO-205 is the Navy’s next oiler after TAO-204, which is the final Kaiser-class oiler. 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.

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.
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Ship Design and Capabilities
The TAO-205 class design (Figure 5 and Figure 6) 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.)
Figure 5. John Lewis (TAO-205)

Source: Cropped version of photograph accompanying National Steel and Shipbuilding Company, “General
Dynamics NASSCO Launches First Ship in the T-AO Fleet Oiler Program for the U.S. Navy,” January 13, 2021.
Note: Launching is when a ship that is under construction is put into the water for the final phases of its
construction.
Planned Total Procurement Quantity
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. Navy plans call for procuring a total of 20 TAO-205s, and for supplementing these
20 ships with 13 additional light replenishment oilers (TAOLs) that would be smaller and
individually less expensive than TAO-205s. The Navy wants to procure the first TAOL in
FY2027. Another CRS report discusses the TAOL program in more detail.7

7 See CRS In Focus IF11674, Navy Light Replenishment Oiler (TAOL) Program: Background and Issues for Congress,
by Ronald O'Rourke.
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Figure 6. John Lewis (TAO-205)

Source: Cropped version of photograph accompanying Team Ships Public Affairs, “USNS John Lewis Conducts
Builder’s Trials,” Naval Sea Systems Command, February 7, 2022.
Annual Procurement Quantities
The Navy procured the first TAO-205 in FY2016, and a total of 10 have been procured through
FY2024 in annual procurement quantities for the period FY2016-FY2024 of 1-0-1-2-2-0-2-1-1.
The Navy’s five-year (FY2025-FY2029) shipbuilding plan programs the procurement of six more
TAO-205s in FY2025-FY2029, in annual quantities of 0-2-1-2-1.
Unit Procurement Cost
Under the Navy’s FY2025 budget submission, the TAO-205s to be procured in the five-year
period FY2025-FY2029 have estimated unit procurement costs of more than $800 million each.
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, DOD sealift ships,
and commercial cargo ships. The first TAO-205 was delivered to the Navy on July 26, 2022, and
the second was delivered on July 11, 2023.
Block Buy Contract for First Six Ships
The first six TAO-205s were procured under a block buy contract that was authorized by Section
127 of the FY2016 National Defense Authorization Act NDAA) (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,
compared to costs under the standard or default DOD approach of annual contracting.8 The Navy

8 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
(continued...)
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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.9
Authority for Using Multiyear Contracting in FY2023 and FY2024
Section 128 of the FY2023 NDAA (H.R. 7776/P.L. 117-263 of December 23, 2022) provides
authority for the Navy during FY2023 and FY2024 to use multiyear contracting to procure not
more than eight TAO-205s. Using multiyear contracting in the form of a multiyear procurement
(MYP) contract would require additional approval in a DOD appropriations act. Using multiyear
contracting in the form of a block buy contract would not require additional approval in a DOD
appropriations act—the authorization provided by Section 128 of the FY2023 NDAA would be
sufficient for using a block buy contract.10
Legislation Regarding U.S. Content Requirement for Certain Components
Section 845 of the FY2021 National Defense Authorization Act (H.R. 6395/P.L. 116-283 of
January 1, 2021) states (emphasis added)
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)—
(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:

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).
9 Source: Navy briefing on TAO-205 program for CRS and CBO, April 12, 2019.
10 For more on MYP and block buy contracting, see CRS Report R41909, Multiyear Procurement (MYP) and Block
Buy Contracting in Defense Acquisition: Background and Issues for Congress, by Ronald O'Rourke.
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‘‘(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)’’.
(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.
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(3) Shipboard cranes.
(4) Spreaders for shipboard cranes.
Section 8100(a) of the FY2023 DOD Appropriations Act (Division C of H.R. 2617/P.L. 117-2328
of December 29, 2022) states
SEC. 8100. (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; spreaders for shipboard cranes;
and anchor chains, specifically for the seventh and subsequent ships of the fleet.
FY2025 Funding
The Navy’s FY2025 budget submission programs the procurement of the next two TAO-205s
(which would be the 11th and 12th ships in the class) for FY2026 and does not request any funding
for FY2025 for the procurement of additional TAO-205s. The Navy’s proposed FY2025 budget
does request $227.2 million in cost-to-complete funding to cover cost growth on TAO-205s
procured in prior fiscal years.
Issues for Congress
Cost Growth and Schedule Delays
One issue for Congress concerns cost growth and schedule delays in the TAO-205 program.
Regarding cost growth, in the Navy’s FY2021 budget submission, the four TAO-205s
programmed for procurement during the five-year period FY2021-FY2025 had an average
estimated procurement cost of $556.9 million per ship, while in the Navy’s FY2025 budget
submission, the six TAO-205s programmed for procurement during the five-year period FY2025-
FY2029 have an average estimated procurement cost of $859.6 million pe ship, a figure that is
about 54% greater.
Cost growth in the TAO-205 program has required the Navy to request cost-to-complete funding
to cover cost growth on TAO-205s procured in prior years. The TAO-205 program has received a
total of $396.7 million in cost-to-complete funding through FY2024. The Navy’s proposed
FY2025 budget, as noted earlier, requests an additional $227.2 million in cost-to-complete
funding, and the Navy’s FY2025 budget submission projects that an additional $21.0 million and
$2.3 million will be requested for FY2026 and FY2027, respectively. The sum of all these figures
is $647.2 million, which equates to roughly three quarters of the above-cited average unit
procurement cost of $859.6 million for the six TAO-205s programmed for procurement in
FY2025-FY2029.
Regarding schedule delays, under the Navy’s budget submission for FY2016 (the year that the
first TAO-205 was procured), the first TAO-205 was scheduled for delivery in August 2020. As
noted earlier, the ship was delivered on July 26, 2022, almost two years after the originally
scheduled delivery date. The delivery dates for subsequent ships in the program have also been
delayed.
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One cause of the cost growth and schedule delays in the TAO-205 program is an incident in July
2018 that flooded a graving dock (i.e., dry dock) at the TAO-205 shipbuilder, GD/NASSCO.11
Other causes of cost growth include cybersecurity change orders that were not provided in the
original shipbuilding construction contract award and cost growth in government-furnished
equipment (GFE) for the ship.12
The Navy stated in July 2021 that the delivery date for TAO-205 has been delayed from June
2021 to March 2022 due to the graving dock incident, late delivery of outfitting materials, and a
need to repair or carry out rework on other parts of the ship, and that the delivery dates of the
second through sixth ships in the class had been delayed by 12 to 15 months due to the graving
dock incident, late delivery of materials, throughput delays caused by delays in building the first
ship, and impacts from the COVID-19 situation.13
The Navy’s FY2024 budget submission stated
Delay in delivering T-AO 205 to July 2022, combined with delays on other Navy work at
NASSCO and continued COVID driven labor shortages that resulted in yard wide
manpower shifts, resulted in a seven month delay for T-AO 206 delivery.... Delay in
delivering T-AO 205 to July 2022, combined with delays on other Navy work at NASSCO
and continued COVID driven labor shortages that resulted in yard wide manpower shifts,
resulted in a four month delay for T-AO 207 delivery.... The twelve month T-AO 208
delivery delay is due to a delay caused by the late receipt of the Main Reduction Gear
(MRG).... T-AO 209 through T-AO 217 have seven to twenty month delivery delays
resulting from TAO 205 through T-AO 208 delays and delays in production timelines
reflecting actual shipyard performance.... The production timelines, delivery dates, and
Completion of Fitting Out dates for ships awarded in FY 2022 and later assume material
costs, supply chain availability, and production timelines that reflect the pre-COVID 19
market place with adjustments for inflation.14
For additional discussion of cost growth and schedule delays in the TAO-205 program, see the
section below on issues for the TAO-205 program that are discussed in a June 2024 Government
Accountability Office (GAO) report assessing major DOD acquisition programs.
Potential oversight questions for Congress include the following:
• What is the likelihood that estimated unit procurement costs for TAO-205s will
continue to increase above the figures in the Navy’s FY2025 budget submission?
What factors will affect whether the program continues to experience growth in
estimated unit procurement costs?
• What impact, if any, has cost growth in the TAO-205 program had on the Navy’s
ability to fund other Navy program priorities?

11 For press reports about the graving dock incident and its impacts on work being done at GD/NASSCO, see, for
example, Megan Eckstein, “NASSCO Drydock Floods, Damaging Under-Construction Expeditionary Sea Base,” USNI
News, July 13, 2018; David Larter, “Partial Dry-Dock Collapse Floods US Navy Ship Under Construction,” Defense
News, July 13, 2018; Tyler Rogoway, “Dry Dock Collapse In San Diego Floods Expeditionary Sea Base Under
Construction,” The Drive, July 13, 2018; Maritime Executive, “Graving Dock Failure at NASSCO Leads to Layoffs,”
Maritime Executive, August 14, 2018; Ben Werner, “Navy: Dry Dock Accident Will Set Back Miguel Keith
Construction At Least 6 Months,” USNI News, October 18, 2018.
12 Source: Navy FY2022 program briefing on TAO-205 program for CRS and Congressional Budget Office (CBO),
July 19, 2021.
13 Source: Navy FY2022 program briefing on TAO-205 program for CRS and Congressional Budget Office (CBO),
July 19, 2021.
14 Department of Defense, Fiscal Year (FY) 2024 Budget Estimates, Justification Book Volume 1 of 1, Shipbuilding and
Conversion, Navy, March 2023, p. 349.
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• How, if at all, does the 54% increase in estimated unit procurement costs for
TAO-205s since the Navy’s FY2021 budget submission affect the cost-
effectiveness of the TAO-205 program relative to other Navy investments?
Number of TAO-205s to Procure in FY2025
Another issue for Congress is whether to procure in FY2025 no TAO-205 class ship (as
programmed in the Navy’s FY2025 budget submission), one TAO-205 class ship, or two TAO-
205 class ships. 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;
• shipyard workloads and employment levels at GD/NASSCO;
• the amount of funding that would be needed to procure one or two TAO-205s in
FY2025; and
• competing Navy or other DOD uses for such funding.
As noted earlier, from FY2016 through FY2024, annual TAO-205 procurement quantities have
been as follows: 1-0-1-2-2-0-2-1-1.
Multiyear Procurement (MYP) or Block Buy Contracting
Another issue for Congress is whether to procure TAO-205s in FY2024 and subsequent years
under a multiyear procurement (MYP) or block buy contract. MYP and block buy contracting are
two types of multiyear contracting. As discussed in the CRS report on MYP and block buy
contracting, using MYP or block buy contracting can reduce the combined procurement cost of
the ships being procured, but can also reduce Navy and congressional flexibility for responding to
changes in strategic or budgetary circumstances that might affect Navy shipbuilding plans.15
As noted earlier, Section 128 of the FY2023 NDAA (H.R. 7776/P.L. 117-263 of December 23,
2022) provides authority for the Navy during FY2023 and FY2024 to use multiyear contracting to
procure not more than eight TAO-205s. Using multiyear contracting in the form of an MYP
contract would require additional approval in a DOD appropriations act. Using multiyear
contracting in the form of a block buy contract would not require additional approval in a DOD
appropriations act—the authorization provided by Section 128 of the FY2023 NDAA would be
sufficient for using a block buy contract.
At an April 26, 2022, hearing on Navy and Marine Corps investment programs before the
Seapower subcommittee of the Senate Armed Services Committee, the Department of the Navy
witnesses were asked about the savings that might be realized by using Economic Order Quantity
(EOQ) purchasing (a feature of MYP contracting and some block buy contracts) for procuring
TAO-205s to be procured in FY2023 and subsequent years. A Navy official replied that the Navy
had estimated a 7% savings for using a block buy contract to procure a certain group of four
amphibious ships (three LPD-17 Flight II class amphibious ships and one LHA-type amphibious

15 See CRS Report R41909, Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition:
Background and Issues for Congress, by Ronald O'Rourke.
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assault ship),16 and that the percentage savings for a group of TAO-205s could be higher, since the
ships to be procured in this case would all be of the same class, which would maximize the
potential for achieving savings through batch-ordering of common components.17
Issues Discussed in June 2024 GAO Report and January 2024
DOT&E Report
June 2024 GAO Report
A June 2024 GAO report—the 2024 edition of an annual GAO report assessing major DOD
acquisition programs—stated the following about the TAO-205 program:
Technology Maturity, Design Stability, and Production Readiness
Since our last assessment, T-AO experienced construction and testing delays to its schedule
that was rebaselined in October 2022. According to the program, T-AO 205 to T-AO 207
delivery delays required the Navy to extend the service life of two of the legacy vessels
that T-AO was intended to replace. However, in March 2024, the program noted that
production milestones have begun to stabilize and the program is tracking to delivery dates
rebaselined in October 2022 for T-AO 208 and the following ships.
The Navy accepted delivery of the lead ship in July 2022 according to the rebaselined
schedule. However, the second ship was not delivered until July 2023—about 2 months
beyond its rebaselined schedule. The program office attributed the delays to slower-than-
projected testing progress due to other shipyard work, lack of materiel readiness that
delayed ship trials and, for the second ship, ripple effects from the lead ship delivery delay.
Similarly, the program expects the shipbuilder to deliver the next ship in the class, T-AO
207—currently under construction—at least 5 months later than planned in the rebaselined
schedule. Per the program, the shipbuilder attributed this delay to continued labor issues
and a failure of robotic steel cutting and welding equipment.
The program also completed some testing but encountered delays to its overall test plan.
For example, some survivability events were delayed by at least 1 year due to ship
availability for testing. The program has test events planned in fiscal year 2024, including
finalizing the initial operational test and evaluation report and the final survivability
assessment.
Cybersecurity
In June 2023, the program completed two cybersecurity assessments—an adversarial
assessment and a cooperative vulnerability and penetration assessment.
Other Program Issues
We previously reported that delivery of the main reduction gear for the fourth ship—T-AO
208—was delayed for 12 months. Program officials stated that they implemented a
mitigation plan, and that the gear—a critical propulsion component comprised of gears that
harness the power generated by the engines to move the shaft and propeller—has since
been delivered. The delay had a ripple effect on future hulls, which was accounted for in

16 For additional discussion of the authority that Congress granted for using such a contract, see CRS Report R43543,
Navy LPD-17 Flight II and LHA Amphibious Ship Programs: Background and Issues for Congress, by Ronald
O'Rourke.
17 Source: Spoken testimony at the hearing of Frederick J. Stefany, Principal Civilian Deputy, Assistant Secretary of the
Navy (Research, Development and Acquisition), Performing the Duties of the Assistant Secretary of the Navy
(Research, Development and Acquisition).
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the October 2022 revised schedule. Program officials stated that they have not seen delays
beyond the revised schedule.
The program office estimates that the first six vessels will exceed their original contract
ceiling price, including T-AO 207, which is scheduled for delivery in May 2024. As a
result, the Navy requested an additional $42 million in its fiscal year 2024 budget request
to complete construction of T-AO 208 through T-AO 212. The program also continues to
implement cost reduction measures. For example, it plans to transition to a commercial
diesel generator for future ships, in line with our leading practice for ship design to
incorporate proven design elements when possible. This action is expected to reduce costs
on T-AO 211 through T-AO 213 by an additional $2 million to $4 million per hull.
However, based on the program manager’s projections, material costs are likely to continue
increasing into 2026.
Program officials are considering options for contracting for the ninth ship. The current
shipbuilder submitted preliminary pricing, which demonstrated potential significant
savings. However, the program has not ruled out competing the contract for the next ship,
and is evaluating the benefits of continuing production with the experienced shipbuilder
compared to holding a competition. The program plans to award a contract in March 2024.
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. It
stated that the T-AO class is on its way to the fleet with T-AO 206 delivery in July 2023
and no change over the last 22 months in delivery dates for T-AO 208 to T-AO 213.
The program office also stated that the Navy continues to work with the shipbuilder to
identify problems earlier in the production cycle to avoid delays during test and trials. It
stated that the lead ship, T-AO 205, successfully demonstrated its capability to conduct
underway replenishment of ships at sea, is currently finishing post-delivery efforts to
address remaining ship deficiencies, and is estimated to finish initial operational test and
evaluation by July 2024.
According to the program, it continues to use shipbuilding best practices along with
leveraging commercial vessel design practices to minimize risks, reduce ship costs, and
drive affordability into the design. The program also stated that, beyond the cost reductions
that have been identified to date, the Navy and the shipbuilder continue to seek out
opportunities to reduce costs while balancing life-cycle costs and fleet requirements.
According to the program, cost performance is stabilizing with the leveling of inflation,
serial production, and learning.18
January 2024 DOT&E Report
A January 2024 report from DOD’s Director, Operational Test and Evaluation (DOT&E)—
DOT&E’s annual report for FY2023—stated the following about the TAO-205 program:
TEST ADEQUACY
The Navy commenced IOT&E [Initial Operational Test and Evaluation] in 3QFY23 [the
third quarter of FY2023] aboard USNS John Lewis (T-AO 205) during its post-delivery
test and trials period. Testing was in accordance with DOT&E-approved test plans but was
incomplete due to unavailability of all ship types that the T-AO 205 is designed to replenish
and reduced crew manning. The Navy demonstrated 8 of 23 replenishment events in the
operational test design and repeated several of these events for seven supplemental events.

18 Government Accountability Office, Weapon Systems Annual Assessment[:] DOD Is Not Yet Well-Positioned to Field
Systems with Speed, GAO-24-106831, June 2024, p. 150.
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The Navy has yet to demonstrate replenishment of amphibious-class ships including LHDs,
LHAs, LPDs, and LSDs.
Tests focused on the delivery of fuel and cargo, as well as communications, damage
control, mobility, replenishment, self-defense, and system reliability. The Navy has yet to
demonstrate simultaneous operation of five connected replenishment stations and conduct
operationally relevant vertical replenishment of dry cargo onboard the T-AO 205 class.
The Navy evaluated cyber survivability of T-AO 205 in 3QFY23. Testing to assess T-AO
205’s cyber survivability posture and the crew’s ability to conduct their mission in a cyber-
contested environment was conducted in accordance with the DOT&E-approved test plan
and observed by DOT&E.
The Navy completed acoustic trials in January 2023 and underwater electromagnetic trials
in March 2023 on USNS John Lewis as part of developmental testing. Data from this
testing will be leveraged to support LFT&E [Live Fire Test and Evaluation] assessment of
the likelihood that the class will set off naval mines as well as determining safe passage
depths for unswept routes.
As part of LFT&E assessment of the class, the Navy completed Total Ship Survivability
Trials (TSST) in July 2023 aboard USNS John Lewis. The TSST simulated three different
weapon hits against USNS John Lewis to exercise the ship’s damage control and
recoverability capabilities to combat primary and secondary damage.
The results from TSST will be used to assess ship recoverability and update modeling and
simulation (M&S) to reflect observed functionality of T-AO 205 systems. Completion of
the LFT&E survivability assessment of the class requires the Navy to complete
verification, validation, and accreditation (VV&A) of the survivability M&S, including the
Advanced Survivability Assessment Program (ASAP).
PERFORMANCE
EFFECTIVENESS
Insufficient data are available to determine operational effectiveness of T-AO 205 due to
testing being incomplete. To date, the T-AO 205 has demonstrated the ability to deliver
fuel and cargo to several ship classes including the CVN 68 class, DDG 51 class, CG 47
class, DDG 1000 class, and LCS 2 class and also demonstrated the ability to deliver and
receive fuel from another combat logistics ship during consolidation operations. Ship
propulsion, damage control, communications, and auxiliary systems supported all observed
operations.
SUITABILITY
Insufficient data are available to determine operational suitability of T-AO 205 due to
testing being incomplete. However, USNS John Lewis could not support scheduled test
events on five occasions due to equipment failures.
SURVIVABILITY
DOT&E is conducting analysis of the cyber survivability data collected on T-AO 205 and
will provide a classified report in FY24.
Because the Navy has yet to complete LFT&E analyses, survivability assessment of T-AO
205 is not yet possible. DOT&E expects sufficient data to be collected by 2QFY24, but the
Navy must complete VV&A of survivability M&S to support assessment. The T-AO 205
TSST identified findings previously not determined through survivability M&S. The Navy
expects to deliver a TSST report and a Final Survivability Assessment Report in FY24.
RECOMMENDATIONS
The Navy should
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1. Complete the remaining IOT&E events to include simultaneous vertical and
underway replenishment and simultaneous operation of five connected replenishment
stations.
2. Complete the VV&A of the survivability M&S to support the Final Survivability
Assessment Report.
3. Evaluate and correct causes of system reliability failures on T-AO 205 ships.
4. Complete the T-AO 205 TSST Report and Final Survivability Assessment Report.19
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 FY2025
Summary of Congressional Action on FY2025 Funding
Table 1 summarizes congressional action on the Navy’s request for FY2025 procurement,
advance procurement (AP), and cost-to-complete funding for the TAO-205 program.
Table 1. Congressional Action on FY2025 Funding for TAO-205s
Millions of dollars, rounded to nearest tenth
Authorization
Appropriation

Request
HASC
SASC
Enacted
HAC
SAC
Enacted
Procurement
0
0
0

(Quantity)
(0)
(0)
(0)

Advance procurement (AP)
0
0
334.5

Cost-to-complete
227.2
227.2
227.2

Source: Navy FY2025 budget submission, committee and conference reports, and explanatory statements on
FY2025 National Defense Authorization Act and FY2025 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. Cost-to-complete funding, also
known as completion of PY (prior-year) shipbuilding programs, is funding for the completion of ships procured in
prior fiscal years. Cost-to-complete funding is generally provided to cover cost growth on prior-year-funded
ships.

19 Director, Operational Test & Evaluation, FY 2023 Annual Report, January 2024, pp. 244-245.
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FY2025 National Defense Authorization Act (H.R. 8070)
House
The House Armed Services Committee, in its report (H.Rept. 118-529 of May 31, 2024) on H.R.
8070, recommends the funding levels shown in the HASC column of Table 1. (See page 426,
which includes no entry for the TAO-205 program, where it would have been line 23.)
FY2025 DOD Appropriations Act (H.R. 8774)
House
The House Appropriations Committee, in its report (H.Rept. 118-557 of June 17, 2024) on H.R.
8774, recommends the funding levels shown in the HAC column of Table 1. The recommended
increase of $334.5 million in advance procurement (AP) funding is for “Program increase—long
lead material for two T-AO ship sets.” (Page 129)
Section 8093(a), a recurring provision, states:
SEC. 8093. (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; spreaders for shipboard cranes;
and anchor chains, specifically for the seventh and subsequent ships of the fleet.

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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 mid-ocean 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,20 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.

20 For more on this transition, see CRS Report R43838, Renewed Great Power Competition: Implications for Defense—
Issues for Congress, by Ronald O'Rourke.
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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].21

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
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copy or otherwise use copyrighted material.

21 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.
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