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Contracts · Shipbuilding

Pentagon says Bath Iron Works can build a second destroyer if Congress funds it

The Navy's fiscal 2027 request included funding for one destroyer, Sen. Susan Collins said in May, when the Navy said it was trying to let the industrial base catch up.

The Department of War said Monday, Oct. 12, that General Dynamics' Bath Iron Works has the capacity and stability to support construction of a second guided-missile destroyer.1–2 Building an additional Arleigh Burke-class (DDG 51) destroyer at the Maine yard is feasible, the department concluded, "should Congress secure the necessary funding."1

Four of Bath Iron Works' 11 contracted destroyers had no metal cut in May

Bath Iron Works' destroyer workload and the Navy's fiscal 2027 request, as stated at a Senate Appropriations hearing on May 21, 2026

OneDDG-51 the fiscal 2027 budget request includes funding for, Sen. Susan Collins said (a request, not enacted)
11destroyers on contract at Bath Iron Works, seven in construction, Acting Navy Secretary Hung Cao said
Fourof those 11 with no metal cut yet, Cao said

On Oct. 12 the Department of War said Bath Iron Works can support a second destroyer "should Congress secure the necessary funding." It named no contract, fiscal year or dollar amount.

Source: Senate Appropriations Committee, May 21, 2026; Department of War, Oct. 12, 2026.

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In May, the Navy's account of Bath centered on its backlog.3 At a hearing on May 21, Senate Appropriations Chair Susan Collins pressed Acting Navy Secretary Hung Cao on a fiscal 2027 request that included funding for only one DDG-51.3–4 Cao answered that Bath had 11 destroyers on contract and seven in construction.3 "We haven't even begun to cut metal for the other four yet," he said. "We're trying to allow the industrial base to catch up."3

The department now cites "verifiable performance enhancements" from what it called a multi-phase due diligence review of the yard's production throughput, schedule adherence, quality assurance, supply chain resilience and workforce. Its release gave no figures from that review and named no statute, contract or dollar amount behind the certification.1 Collins, who said she worked with the administration during its review and "repeated visits to BIW," said the decision clears the way for the department to order an additional destroyer there in fiscal 2027.2

Bath is one of two DDG-51 builders, alongside HII's Ingalls Shipbuilding in Pascagoula, Miss.5 In May, Collins called for at least two a year to sustain both yards and their suppliers. Without steady throughput, she said, "what you create is a gap at the steel cutting stage."3

The department made its finding conditional on Congress securing the funding, and Collins tied the order to fiscal 2027.1–2 The final defense appropriations bill for that year will show whether the second ship gets funded. Deputy Secretary of War Steve Feinberg paired the certification with a warning that the yard "must continue this momentum to fully resolve legacy production challenges."1

Sources (5)
  1. Department of War: Department of War Certifies Production Capacity for Second Guided-Missile Destroyer at Maine's Bath Iron Works (Oct. 12, 2026) www.war.gov
  2. Sen. Susan Collins: Senator Collins, Pentagon Announce Second Guided-Missile Destroyer to Be Built at BIW (Oct. 12, 2026) www.collins.senate.gov
  3. Senate Appropriations Committee: Sen. Collins: FY27 Navy Budget Should Include Multiple Destroyers (May 21, 2026) www.appropriations.senate.gov
  4. Senate Appropriations Committee: Hearings www.appropriations.senate.gov
  5. Congressional Research Service: Navy DDG-51 and DDG-1000 Destroyer Programs: Background and Issues for Congress www.congress.gov

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Contracts · Submarines

Navy asks which shipyards could be prime builders for its SSN(X) attack submarine

The market survey also aims to identify future capital expenditure requirements for the planned Virginia-class successor. It commits the Navy to no solicitation or contract.

The Navy is looking for domestic shipyards interested in and capable of serving as "a prime construction yard(s)" for SSN(X), its planned successor to the Virginia-class attack submarine.2–3 The SSN(X) program office, PMS 351, issued the sources-sought notice with the Navy's directors of submarine programs and of design and construction, and Naval Sea Systems Command's Team Submarine office posted it Friday.1, 3 It is market research meant to "baseline current domestic industrial capabilities, identify future capital expenditure requirements, and inform acquisition strategies."3

The SSN(X) program office PMS 351 issued a sources sought notice to identify domestic shipyards interested and capable of serving as prime construction yard(s)

SSN(X) is the Navy's envisaged successor to the Virginia-class design

U.S. Navy submarines are built byElectric Boat and Newport News Shipbuildingactual

the only two U.S. shipyards capable of building nuclear-powered ships

All responsible sourcesmay submit a capability statementrequested

will be reviewed by the agency if received by the closing date of this notice

Responses are dueOct. 15, 2026requested

no later than 1700 Eastern Daylight Time

market research to baseline domestic industrial capabilities, identify future capital expenditure requirements and inform SSN(X) acquisition strategies

The notice is not a commitment to solicit offers or award contracts

Sources: NAVSEA Team Submarine, SSN(X) sources sought notice N00135-27-SSNX, SAM.gov, Oct. 9, 2026; Congressional Research Service, IF11826. As of Oct. 11, 2026.

Sources
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Today only two U.S. shipyards can build nuclear-powered ships: General Dynamics Electric Boat and HII's Newport News Shipbuilding. They build each Virginia-class boat jointly. Earlier submarines were each built entirely in one yard, and the Congressional Research Service lists which approach SSN(X) should follow among the program's issues for Congress.2 The notice's "yard(s)" leaves the number of prime yards open.3

The bar is infrastructure for "large-scale nuclear submarine construction." Prime yards must be capable of complete hull fabrication, modular outfitting, reactor compartment installation and post-delivery testing, with graving docks or floating drydocks and gantry cranes that can lift submarine modules. Any responsible source may respond, but incomplete questionnaires will not be reviewed. The program office wants detail on each candidate's capacity, drydock availability, tooling and design workforce to determine its readiness for "a long-duration capital combatant construction program."3

The Navy is asking about future capital spending for a boat whose envisaged first procurement was deferred to FY2040 in the Navy's FY2025 budget submission.2–3 Responses are due Thursday, Oct. 15, at 5 p.m. Eastern, through a DoD SAFE secure link vendors must request before the notice closes. The Navy may follow up with vendors it judges capable.3

Sources (3)
  1. SAM.gov federal hierarchy record, organization 500204001 (Team Submarine) sam.gov
  2. [Congressional Research Service: Navy Next-Generation Attack Submarine (SSN[X]) Program: Background and Issues for Congress]( www.congress.gov
  3. sam.gov sam.gov

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Capital · Submarine industrial base

Anduril's next industrial bet is a submarine shipyard

Anduril is backing a planned Maryland yard with $3.7 billion in private capital. It says its Navy contract, worth up to $2.9 billion, ties payments to demonstrated production outcomes.

Anduril's route into Virginia-class submarine construction runs through the two companies already building the boats, General Dynamics Electric Boat and Huntington Ingalls Industries' Newport News Shipbuilding. Its planned shipyard, Arsenal-2, will build "complex components and large scale assemblies" of the submarine and deliver them to both for final assembly. The yard will go up at Tradepoint Atlantic in Baltimore County, Maryland.1

Arsenal-2 will build complex components and large scale assemblies

Backed by a $3.7 billion private capital investment by Anduril Industries

Arsenal-2Baltimore County, Maryland
Electric Boatfinal assembly
Newport News Shipbuildingfinal assembly

Initial operations are expected to come online in 2030

Source: Anduril

Sources
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Anduril's $6.6 billion headline figure combines two kinds of money. One is $3.7 billion of private capital that Anduril is putting behind the yard. The other is a Navy contract that Anduril says is worth up to $2.9 billion, with payments tied "directly to demonstrated production outcomes." Anduril says that structure leaves the company, "not the taxpayer," with "the majority of the execution risk."1

Permitting and site preparation begin immediately, with construction to start once the necessary approvals are in place. Initial operations are expected in 2030. The submarine work also has a California address: a new 160,000-square-foot facility in Orange County will manufacture Virginia-class components and support prototyping and production of test assets and maritime components, including torpedo tubes.1

Anduril says adding another source of this work will allow more submarine construction to happen in parallel across the industrial base. It expects production to scale progressively after initial operations as it builds the workforce, supplier base, infrastructure and manufacturing throughput that submarine production requires. Once initial operations begin, expected in 2030, components and assemblies arriving at Electric Boat and Newport News will be the test of that claim.1

Clarification, October 7, 2026: The headline changed from “Anduril backs Arsenal-2, a Virginia-class component shipyard, with $3.7 billion of private capital” to “Anduril's next industrial bet is a submarine shipyard”. The summary now reads: “Anduril is backing a planned Maryland yard with $3.7 billion in private capital. It says its Navy contract, worth up to $2.9 billion, ties payments to demonstrated production outcomes.” Revision notice clarified October 11, 2026.

Sources (1)
  1. Anduril: Anduril, U.S. Navy Invest $6.6 Billion to Expand America's Submarine Industrial Base (Oct. 6, 2026) www.anduril.com