The Defense Logistics Agency (DLA) in Mechanicsburg, Pennsylvania, has awarded six companies a $5 billion contract—with the potential to reach $10 billion—to support the U.S. Navy’s submarine supply chain. The contract aims to ramp up production and reduce delays in building Virginia-class nuclear submarines.
The award is part of the DLA’s Maritime Industrial Capability and Commercial Procurement Program (MICC), designed to modernize defense supply chains and improve readiness by giving the Navy faster access to the parts and components needed to maintain and expand the submarine fleet.
The companies selected for the contract include:
- Culmen International
- SupplyCore
- ASRC Federal
- Valiant Defense Services
- Planate Management Group
- Echelon Services
The new contract uses an Indefinite Delivery/Indefinite Quantity (IDIQ) structure with five one-year base periods and five one-year option periods. According to DLA, the goal is to enable rapid sourcing of hard-to-find parts, maintenance services, and specialized components needed for submarine production.
“DLA is committed to strengthening the Navy’s maritime advantage by ensuring a more resilient, responsive supply chain,” said officials from the agency. “The MICC program will help increase capacity in key areas of the submarine industrial base, reduce part lead times, and improve overall readiness.”
The funding is tied directly to the Navy’s plan to consistently build two Virginia-class submarines per year. This plan has faced delays due to labor shortages, limited supplier capacity, and slow component sourcing. By engaging small—and mid-sized suppliers through this multi-vendor approach, the Pentagon hopes to build a more agile and scalable supply base.
The DLA said the companies will begin work immediately to help address current supply constraints and ensure long-term support for ongoing submarine production.
