Norfolk Naval Shipyard has begun a $442 million modernization of Dry Dock 3, a major infrastructure project aimed at improving the maintenance and modernization of Virginia-class submarines as part of the Navy’s Shipyard Infrastructure Optimization Program (SIOP).
The project was marked by a groundbreaking ceremony at the Portsmouth, Va., shipyard, where Dry Dock 3 has supported naval maintenance operations since opening in 1908. Originally built to service battleships during World War I, the dry dock is now being upgraded to support newer nuclear-powered platforms and improve maintenance throughput for the Navy fleet.
In December 2025, Naval Facilities Engineering Systems Command Atlantic awarded Chesapeake, Va.-based MEB General Contractors Inc. a $442.1 million firm-fixed-price contract for the work. The total potential contract value, including options and award fees, is approximately $467.2 million.
The modernization effort, designated MILCON Project P1062, includes rebuilding the dry dock’s caisson seats with deep foundations, refurbishing the dock floor and walls, and pinning the concrete floor to improve structural integrity. The project also calls for construction of a new wet well and pump house to replace aging pumpwell systems, rerouting utilities through a new trench around the dock perimeter, and replacing surrounding rail systems.
Shipyard officials described the work as a full “bottom-to-top” modernization intended to improve reliability and shorten maintenance timelines for submarines undergoing overhaul work.
The Dry Dock 3 modernization is scheduled for completion in January 2031. Once complete, Norfolk Naval Shipyard will have three modernized dry docks as part of broader SIOP investments underway across the Navy’s four public shipyards.
The Navy said the upgrades are intended to increase readiness and support maintenance demands for current and future platforms, including Virginia-class submarines and Ford-class aircraft carriers.
Dry Dock 8 at Norfolk Naval Shipyard is also being upgraded under the SIOP program and is expected to become the first public shipyard dry dock capable of supporting Ford-class carrier maintenance.
SIOP is a multi-decade effort focused on modernizing aging infrastructure, improving industrial workflows, and recapitalizing equipment across the Navy’s public shipyards. Since 2018, the Navy said the program has completed more than 50 facilities projects valued at nearly $1.5 billion and delivered more than 300 pieces of industrial equipment worth more than $700 million, including cranes, machining equipment, and manufacturing tools supporting the Navy’s approximately 37,000 shipyard workers.
