Pentagon awards $5 billion contract to accelerate Navy shipbuilding

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The Pentagon’s push to reinforce the US Navy’s shipbuilding capacity has taken a major step forward with the recent $5 billion Maritime Acquisition Advancement Contract. Awarded through the Defense Logistics Agency Maritime Mechanicsburg, the agreement is intended to accelerate ship part manufacturing and modernize procurement for an array of Navy vessels. As the Navy grapples with aging shipyards and supply chain delays, this contract signals a renewed effort to maintain maritime superiority.

Contract details and objectives

The Maritime Acquisition Advancement Contract (MAAC) is structured as an indefinite-delivery/indefinite-quantity agreement with five annual options, each valued at $1 billion. If fully exercised, the contract could reach a ceiling of $10 billion over five years. By streamlining administrative processes and consolidating procurement for critical components, the MAAC is designed to trim long lead times that have historically slowed delivery of essential equipment.

Elizabeth Allen, deputy director at DLA Maritime Mechanicsburg, emphasized that the new contracting vehicle will significantly cut administrative delays that have challenged Navy shipbuilding timelines for years. The contract covers components for Virginia-class nuclear-powered submarines, surface combatants and emerging unmanned systems.

Role of small businesses

A standout aspect of the contract is its emphasis on engaging small businesses to strengthen the Navy’s supply chain. Six companies, SupplyCore, Atlantic Diving Supply, Culmen International, ASRC Federal, Fairwinds Technologies, and S&K Aerospace, will supply a diverse range of components for the Navy’s expanding fleet.

SupplyCore, for example, will help provide parts spanning carriers, cruisers, destroyers and unmanned vessels. According to Peter Provenzano, the company’s president and CEO, the award underscores SupplyCore’s ongoing commitment to sustaining operational readiness across the service’s complex mix of vessel types.

Addressing shipbuilding challenges

The Navy has faced repeated setbacks in meeting its goal of delivering two Virginia-class submarines each year, with delays tied to workforce shortages and supply chain disruptions. The MAAC is part of a broader push to tackle these constraints by leveraging more flexible contracting and expanded supplier networks.

In tandem with the contract, the Navy continues to experiment with technologies such as Augmented Reality Maintenance Systems to ease troubleshooting at sea. It is also deploying 3-D printing capabilities to fabricate essential ship components more rapidly. Combined with a request for nearly $1 billion in drydock modernization in its fiscal 2026 budget, these initiatives reflect the Navy’s effort to modernize aging infrastructure and sustain fleet readiness.

Speeding up the delivery of key ship parts will play a vital role in bolstering the Navy’s combat capability at a time when maritime competition is intensifying. By tapping into the flexibility of small businesses and modern procurement practices, the MAAC aims to shore up production rates for Virginia-class submarines and keep pace with operational demands.

Beyond immediate production needs, the contract reflects the Pentagon’s commitment to reshaping how it manages complex supply chains and strengthening critical defense manufacturing capacity in the US.

Sources:

• Defense News