Pentagon Awards $5 Billion Virginia Sub Contract to Boost Production
The Pentagon’s Defense Logistics Agency (DLA) has contracted six small businesses to expedite the construction of Virginia-class submarines.
The $5-billion Maritime Acquisition Advancement Contract is intended to accelerate the procurement of integrated weapon systems equipment and services for the US Navy platforms.
The indefinite-delivery/indefinite-quantity contract has five one-year options, each valued at $1 billion and possibly reaching $10 billion.
Contract Awards
The contract has been awarded to ASRC Federal, Atlantic Diving Supply, Culmen International, Fairwinds Technologies, S&K Aerospace, and SupplyCore.
DLA Maritime Mechanicsburg Deputy Director Elizabeth Allen said that the multi-award structure was chosen to handle the sheer volume and requirements of the navy.
“There are significantly long lead times the Navy faces … this contracting vehicle streamlines and reduces our end of the administrative lead time,” she explained, adding that “it leverages innovative methods to get items into contract quickly.”
Need to Increase Sub Delivery Rate
The contract follows a group of US Navy leaders highlighting the need for reinforced supply chain capacity to achieve the critical goal of building two Virginia-class submarines annually.
In an April hearing before the Senate Armed Services Committee, US Navy Rear Admiral Jonathan E Rucker expressed dissatisfaction with the submarine’s delivery rate.
“Our 2024 annual production rate of Virginia-class submarines per year was 1.13 compared to our need of 2.0,” he pointed out.
Rucker cited issues such as “workforce challenges, material and supplier delays and shipbuilder facilities and infrastructure issues — all of which are driving cost increases and schedule delays.”
Nuclear-Powered Attack Sub
The Virginia-class is replacing the aging Los Angeles-class fleet, many of which have been decommissioned.
A total of 24 nuclear-powered attack Virginia boats are in service, while 14 are under construction.
The US Navy plans to have a fleet of 66 Virginia submarines by 2043, which are expected to remain in service until at least 2060.
“This contract supports a mission that’s a top priority at the highest level,” Allen added.
