Newport News Shipbuilding Wins $56 Million AUKUS Submarine Engineering Contract

Huntington Ingalls Inc.’s Newport News Shipbuilding division has received a Naval Sea Systems Command contract for engineering, technical, design-agent and design-transfer work supporting nuclear submarine capabilities and their sustainment under foreign military sales requirements. The cost-plus-fixed-fee award is valued at $56.2 million and could reach $91.1 million. Work is expected to run through September 2027 and, if the full potential scope is carried out, through September 2028. Most of the work will take place in Newport News, Virginia, with the remainder at foreign locations.

Nuclear Submarine Engineering and Design Transfer Details

Newport News Shipbuilding will provide engineering and technical support for submarine capabilities and their long-term sustainment. The Navy’s award notice also assigns the shipbuilder design-agent and design-transfer activities, connecting submarine design work with the requirements of foreign partners.

According to Huntington Ingalls, the work supports AUKUS submarine cooperation with the United Kingdom and Australia. The company said its activities will include partner engineering, technology insertion, supply-chain and workforce development, alongside support by U.S. engineers for the SSN-AUKUS design. The award is for engineering and related support, rather than submarine construction.

AUKUS Submarine Program Background

AUKUS Pillar I is a long-term effort to provide Australia with conventionally armed, nuclear-powered submarines and build the capacity to operate and sustain them. Australia’s acquisition plan calls for the United States to sell it three Virginia-class submarines beginning in the early 2030s. Australia also plans to begin building SSN-AUKUS submarines in South Australia by the end of this decade, with delivery of its first boat planned for the early 2040s.

The SSN-AUKUS is a UK-led design intended to incorporate technology from all three countries. In parallel with the design and acquisition work, Australia is preparing to host and maintain allied submarines through Submarine Rotational Force–West, planned to begin in 2027. The new contract covers engineering and design-transfer support within that broader effort.

Award and Contractor Background

The Navy awarded the contract without competition, citing Newport News Shipbuilding as the only responsible source able to meet its requirements. Foreign-partner funds of $19.1 million were committed at award; the contract includes no U.S. funding. The Navy expects 88% of the work to be performed in Newport News and 12% at foreign locations.

This award was disclosed by the DoW in its daily press release. Additional contract details will be available on HigherGov in approximately 90 days under N0002427C2133 after the contract is formally disclosed by the government.