Pentagon awards $5 billion contract to accelerate Virginia-class submarine production and boost ship readiness

Pentagon awards $5 billion contract to accelerate Virginia-class submarine production and boost ship readiness

News, US Comments Off on Pentagon awards $5 billion contract to accelerate Virginia-class submarine production and boost ship readiness

4 minute read

Pentagon’s Defense Logistics Agency (DLA) has awarded a $5 billion contract to six small businesses to speed up delivery of weapons systems and parts for U.S Navy Virginia-class submarines, which are intended to replace the aging Los Angeles-class submarines, as well as active surface ships, enhancing maritime readiness.

The Maritime Acquisition Advancement Contract (MAAC) has a multi-award format that could reach $10 billion over five years and aims to streamline logistics support amid long procurement lead times.

DLA Maritime Mechanicsburg Deputy Director Elizabeth Allen said that the multi-award structure was crucial 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.”


Maritime Acquisition Advancement Contract

The contract is designed to to accelerate DLA’s procurement of integrated weapons systems equipment and services” and support the Navy’s most advanced class of nuclear-powered fast-attack submarines and streamline logistics amid increasingly long procurement lead times.

The contract has been awarded to ASRC Federal, Atlantic Diving Supply, Culmen International, Fairwinds Technologies, S&K Aerospace, and SupplyCore.

The MAAC follows a yearlong acquisition effort that generated nine offers in a competitive process. Contracting Officer Brian Stevens emphasized the contract’s alignment with the Department of Defense’s acquisition priorities of “speed over process”.

“We created this vehicle to do more with less — we can do larger contracts faster, which coincides perfectly with the Virginia-class initiative,” Stevens said. “I’m very proud of the work we’ve done,” he added.

U.S. Navy Virginia-class attack submarine. (Image Credit: General Dynamics Electric Boat/via U.S. Navy)

Timothy McCloskey, acquisition director at DLA Maritime Mechanicsburg, pointed to the contract’s wider applicability beyond just the issuing command. “It’s not just a benefit for DLA here in Mechanicsburg; it’s a benefit for any other buying activity that wants to use it,” he said.

Located at Naval Support Activity Mechanicsburg, Pennsylvania, DLA Maritime Mechanicsburg is responsible for procuring depot-level repairable assets for surface ships, submarines, and aircraft carriers. It operates under DLA Land and Maritime, headquartered in Columbus, Ohio, which supports thousands of land- and sea-based weapons systems.

Allen noted that the team is already working with other DLA detachments and naval shipyards to expand the contract’s reach and utility. “We’re working together with the Navy — they’re excited about this contract vehicle, and we’re engaged with industry,” Allen said. “They’re seeing the benefits. They know the need, they know the criticality of the items and they’re ready to go.”

The contract comes amid growing concern from Navy leadership over lagging submarine production. At an April Senate Armed Services Committee hearing, Rear Adm. Jonathan Rucker noted the Navy delivered just 1.13 Virginia-class submarines in 2024—short of the goal of building two Virginia-class submarines per year. Rucker attributed the shortfall to “workforce challenges, material and supplier delays, and shipbuilder facilities and infrastructure issues,” all contributing to rising costs and schedule setbacks.

Currently, 24 Virginia-class attack SSBNs are in service and 14 are under construction. The U.S. Navy has planned 66 of these submarines by 2043, with the class expected to serve through at least 2060.

“This contract supports a mission that’s a top priority at the highest level,” Allen added, underscoring U.S. Defense Secretary Pete Hegseth’s emphasis on the Virginia-class program.

US Virginia-class attack submarine Iowa SSN 797
U.S. Navy Submarine Force’s newest Virginia-class attack submarine Iowa SSN 797. (Image Credit: U.S. Navy/John Narewski)

The Navy aims to build one Columbia-class and two Virginia-class submarines annually, with plans to increase Virginia-class production to 2.33 subs per year. Simultaneously, it is working to add more Gerald R. Ford-class aircraft carriers to the fleet.

In May 2025, U.S. Navy Acting Chief of Naval Operations Adm. James W. Kilby emphasized the importance of platform readiness during testimony before lawmakers. “Our platforms are not as ready as they need to be,” Kilby stated. “We set an ambitious goal to make 80% of our ships, submarines and aircraft combat surge ready by Jan. 1, 2027. To do that, we are reducing maintenance delays. We are improving manning, training, modernization and sustainment.”

Related Articles



Global Politics


IRIA Publications


Defense News


Regions

International Relations Insights and Analysis (IRIA) is a research institute focusing on critical issues that threaten international peace and security. We conduct in-depth analysis on defense, terrorism, foreign affairs, and global security issues. IRIA provides tailored reports and briefings for officials, policymakers, and scholars. For exclusive reports, contact: [email protected]

© 2025 International Relations Insights & Analysis, Inc. All Rights Reserved.
Follow IRIA for latest updates IRIA QR Code