US Navy Invests to Speed Up Virginia Class Submarine Production to Preserve Undersea Stealth Edge.

According to information published by the Defense Logistics Agency Land and Maritime on June 4, 2025, DLA Maritime Mechanicsburg has awarded a $5 billion contract, known as the Maritime Acquisition Advancement Contract (MAAC), to six small businesses to accelerate procurement processes for Virginia-class submarines and active surface vessels. Structured as a firm-fixed-price, indefinite-delivery/indefinite-quantity agreement, the MAAC includes five annual options worth $1 billion each, potentially reaching a total value of $10 billion. The selected companies, ASRC Federal, Atlantic Diving Supply, Culmen International, Fairwinds Technologies, S&K Aerospace, and SupplyCore, will support the U.S. Navy’s fleet of nuclear-powered fast attack submarines.
Follow Army Recognition on Google News at this link

The Virginia-class fast-attack submarine USS Minnesota (SSN 783) (Picture source: US DoD)

This contract comes at a time when concerns have been raised about the Navy’s ability to meet production targets for the Virginia-class program, intended to replace the aging Los Angeles-class submarines. In an April 2025 Senate hearing, Navy officials emphasized the need to strengthen industrial capacity, citing workforce shortages, supplier delays, and infrastructure constraints. The Department of Defense aims to produce two Virginia-class submarines per year, but the delivery rate in 2024 remained below this objective at 1.13 units.

BAE Systems is also contributing to this modernization effort through a $70 million contract awarded by General Dynamics Electric Boat to manufacture Virginia Payload Module (VPM) missile tubes for Block VI Virginia-class submarines. These modules will expand the payload capacity of the vessels and support long-range undersea warfare capabilities.

The Virginia-class program is a central component of the U.S. Navy’s undersea force structure, with a planned fleet of 66 units by 2043. According to the Congressional Research Service, 40 submarines have been ordered as of fiscal year 2024, including 22 currently in service and 18 under construction. These submarines are designed for a range of missions, including anti-submarine and anti-surface warfare, intelligence collection, precision strikes, and support for special operations. The latest variants include the VPM, which significantly increases Tomahawk cruise missile capacity, with a total estimated payload of up to 65 weapons.

The program also plays a strategic role in the U.S. Indo-Pacific posture, particularly under the AUKUS security partnership, which includes the planned sale of three to five Virginia-class submarines to Australia. To offset these transfers, the U.S. Navy must build additional units to maintain its own operational readiness in both the Atlantic and Pacific. This dual objective places additional pressure on domestic industrial capacity. Since 2022, production rates have declined to approximately 1.2 units per year. In response, nearly $10 billion has been invested to reinforce the submarine industrial base, recruit skilled labor, and upgrade shipyard facilities. The goal is to restore production to a rate of 2.33 submarines per year by 2028 to ensure fleet availability.

Elizabeth Allen, Deputy Director of DLA Maritime Mechanicsburg, stated that the MAAC aligns with the Secretary of Defense’s strategic priorities. She noted that the contract mechanism is designed to reduce administrative lead times and enhance procurement flexibility. Contracting Officer Brian Stevens emphasized that the MAAC was built to allow faster, larger-scale awards in response to the Virginia-class program’s requirements.

Resulting from a one-year competitive solicitation process that attracted nine proposals, the MAAC’s multi-award format was deemed necessary to address the volume and diversity of procurement demands. Timothy McCloskey, Acquisition Director at DLA Maritime Mechanicsburg, highlighted that the contract is not limited to his office but is also available to other Navy contracting activities seeking efficient acquisition tools.

Located within Naval Support Activity Mechanicsburg, Pennsylvania, DLA Maritime Mechanicsburg manages procurement of depot-level repairables for surface ships, submarines, and aircraft carriers. The detachment reports to DLA Land and Maritime in Columbus, Ohio, which oversees logistics for thousands of U.S. military systems.

Allen added that her team has begun outreach to other DLA units and Navy shipyards, with roadshows being planned to promote MAAC across additional commands. According to her, industry partners have expressed readiness and awareness of the program’s urgency and operational relevance.

The MAAC award and the VPM missile tube contract for BAE Systems represent a coordinated effort to enhance the U.S. Navy’s undersea capabilities. These initiatives occur within a broader strategic context that encompasses the AUKUS partnership and reflects the Department of Defense’s intention to rebuild its full-scale submarine production capacity in response to increasing global challenges.