Dept. of Defense awards contracts to three US shipyards

On June 3, the U.S. Department of Defense announced new contracts awarded to three U.S. shipyards under Navy and Army programs. These awards include towing and salvage ship support, hospital ship maintenance, and a steel deck barge procurement.

Bollinger Shipyards Lockport LLC, Lockport, La., received a $60 million firm-fixed-price modification to a previously awarded contract (N00024-18-C-2207). The modification provides additional pre- and post-delivery work, including industrial services, shipyard support, and extended post-delivery availabilities for the Navajo-class towing, salvage, and rescue ships. Work will take place in Pascagoula, Miss. (88%), and Houma, La. (12%), with an expected completion date of January 2030. Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Alabama Shipyard LLC, Mobile, Ala., was awarded an $18,734,274 firm-fixed-price contract (N3220525C4014) for a 153-calendar day availability, including drydocking, of Military Sealift Command’s hospital ship USNS Mercy (T-AH 19). The base contract includes three unexercised options, which would bring the total value to $18,959,447 if awarded. Work is scheduled to begin on July 15, 2025, in Mobile, Ala., with completion expected by Dec. 14, 2025. The award used working capital funds (Navy) for fiscal 2025 and will not expire at the end of the fiscal year. The contract was solicited through a small business set-aside on the Governmentwide Point of Entry website, with two offers received. Military Sealift Command, Norfolk, Va., is the contracting activity.

Conrad Shipyard LLC, Morgan City, La., was awarded an $8,418,100 firm-fixed-price contract (W912EQ-25-C-A001) by the U.S. Army Corps of Engineers for the construction of a steel-hulled deck barge. Work will be performed in Memphis, Tenn., with completion expected by Dec. 10, 2025. DOD noted two bids were received through internet solicitation.

A separate Navy contract was also announced.

Leidos Inc., Reston, Va., was awarded a $20,945,962 cost-plus-fixed-fee and cost-only modification to a previously awarded contract (N00024-22-C-5231). The award covers integrated logistics support, fleet maintenance, and lifecycle sustainment for the AN/SQQ-89 undersea warfare combat system. Work will be performed in Chesapeake, Va. (51%); San Diego, Calif. (37%); Yokosuka, Japan (3%); Bath, Maine (3%); Pascagoula, Miss. (3%); Mayport, Fla. (2%); and Seattle, Wash. (1%). Completion is expected by May 2026.

Funding includes fiscal 2025 operations and maintenance (Navy) at $1,919,000 (56%); research, development, test, and evaluation (Navy) at $687,642 (20%); Foreign Military Sales (Australia) at $486,579 (14%); and Foreign Military Sales (Japan) at $334,332 (10%). Of these funds, $1,919,000 will expire at the end of the current fiscal year. Naval Sea Systems Command, Washington, D.C., is the contracting activity. The Leidos award date was May 29, 2025.