US Navy to buy propulsion systems for Virginia-class submarines
The US Navy has signed a $138 million contract (about $137.7 million) with BAE Systems to sustain production of the propulsion systems that power its Virginia-class nuclear attack submarines.
What the contract covers
The Navy awarded the contract without competition after identifying BAE Systems as the intended sole-source supplier in its presolicitation notice. The scope covers propulsor forward subassemblies for fiscal 2026 and 2027 Virginia-class boats, plus advanced propulsor hardware and engineering services. The award went to BAE Systems Land & Armaments L.P.
Background
BAE Systems has long supplied the Virginia class’s propulsor forward assemblies and has delivered 33 of them to the Navy to date. In October 2024 a separate $92 million award was announced for propulsor forward assemblies, engineering design support and sustainment hardware. In July 2026 the Navy also announced a contract covering nine Virginia-class submarines planned across fiscal 2025 through 2029.
