The Pentagon’s Defense Logistics Agency (DLA) Maritime Mechanicsburg has engaged six small businesses in a significant effort to accelerate the construction of Virginia-class submarines through a contract valued at $5 billion. This Maritime Acquisition Advancement Contract aims to expedite the procurement of integrated weapon systems equipment and services essential for U.S. Navy platforms, reflecting a strategic move to bolster naval capabilities.
The contract operates as an indefinite-delivery/indefinite-quantity agreement, which includes five one-year options, potentially pushing the total value to a substantial $10 billion. The companies selected for this initiative are ASRC Federal, Atlantic Diving Supply, Culmen International, Fairwinds Technologies, S&K Aerospace, and SupplyCore.
Elizabeth Allen, the deputy director of DLA Maritime Mechanicsburg, emphasized that the multi-award structure was strategically chosen to efficiently manage the Navy’s extensive requirements and overcome significant lead times. “There are significantly long lead times the Navy faces…this contracting vehicle streamlines and reduces our end of the administrative lead time,” she stated. Additionally, she highlighted the use of innovative methods to ensure that necessary items are procured quickly and effectively.
This development comes in direct response to growing concerns raised by U.S. Navy leaders about the submarine delivery rate. During a recent Senate Armed Services Committee hearing, Rear Admiral Jonathan E. Rucker expressed his disappointment, citing a production rate of just 1.13 submarines annually for 2024, while the requirement stands at two. He attributed the shortfall to various challenges including workforce shortages, material and supplier delays, and issues related to shipbuilder facilities and infrastructure, which have collectively led to increased costs and schedule delays.
The Virginia-class submarines are designed to replace the aging Los Angeles-class fleet, many of which have already been decommissioned. Currently, 24 nuclear-powered Virginia submarines are operational, with another 14 under construction. The U.S. Navy has ambitious plans to expand its fleet to 66 Virginia-class submarines by 2043, with expectations for these vessels to remain in service until at least 2060.
“This contract supports a mission that’s a top priority at the highest level,” Allen concluded, underscoring the importance of this initiative in enhancing the U.S. Navy’s operational readiness and capacity in the coming decades.
