DEFENSE TECHNOLOGY

Navy Awards $112.8 Million Contract to Eight Companies for Fleet, Vessel and Shore Systems Services

The five-year agreement covers hull, mechanical and electrical machinery and systems services for the Navy fleet, shore installations and other maritime assets.

By Donna Joseph
Aug 21, 2026 8:39 PM
Navy Awards $112.8 Million Contract to Eight Companies for Fleet, Vessel and Shore Systems Services Photo by SBR

Summary
  • The IDIQ structure allows the Navy to place individual task orders as requirements emerge, rather than committing the full $112.83 million at award.
  • Each contractor receives a $500 minimum guarantee, while the combined ceiling limits orders across all eight contracts to $112.83 million through July 2031.
  • Initial funding is only $4,000, with additional funds expected to be obligated through future task orders as specific work is assigned.

WASHINGTON, August 19, 2026 — The U.S. Navy has awarded a combined $112,833,317 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract to eight companies for hull, mechanical and electrical machinery and systems services. The work will support the Navy’s surface fleet, submarines, shore-based installations, other federal agency vessels, select maritime agency vessels and land-based sites. The eight awardees are Amee Bay LLC of Anchorage, Alaska; Atlantic Fabrication & Boiler Services Inc. of Portsmouth, Virginia; AVMAC LLC of Chesapeake, Virginia; Continental Tide Defense Systems Inc. of Wyomissing, Pennsylvania; Delphinus Engineering Inc. of Newtown Square, Pennsylvania; Epsilon Systems Solutions Inc. of Portsmouth, Virginia; La Playa Inc. of Virginia of Chesapeake, Virginia; and Q.E.D. Systems Inc. of Virginia Beach, Virginia. The contracts have a cumulative ceiling of $112,833,317 over a five-year ordering period, with each awardee receiving a $500 minimum contract guarantee at award. Work will be performed in the continental United States and overseas at various locations, including private shipyards, public Naval shipyards, military establishments and contractor facilities, with completion expected by July 2031. The Naval Surface Warfare Center Philadelphia Division in Philadelphia, Pennsylvania, is the contracting activity.

Fleet and Shore Installation Services

The contract provides for services involving hull, mechanical and electrical machinery and systems across Navy vessels and installations. The scope extends beyond the surface fleet and submarines to shore-based installations, other federal agency vessels, select maritime agency vessels and land-based sites. Work locations may include both U.S. and overseas facilities, giving the Navy access to the eight contractors across a range of shipyards, military sites and contractor facilities. The contract was competitively procured through full and open competition using the System for Award Management website, with eight offers received.

The five-year ordering period gives the Navy access to the awardees through July 2031 as individual requirements arise. The contract is structured as an indefinite-delivery/indefinite-quantity vehicle, with the overall value capped at $112.83 million rather than committing that amount to the eight companies at the time of award. Individual requirements will be placed through task orders, allowing the Navy to procure the specific services needed during the ordering period.

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Initial Funding and Task Orders

The Navy will obligate $4,000 in fiscal 2026 other procurement funding at the time of award. That funding will expire at the end of the current fiscal year. The initial obligation is limited because the contract establishes a framework for future orders rather than providing the full $112.83 million upfront. Additional funding will be made available at the task-order level as contracting actions occur.

The structure allows individual work requirements to be ordered from the eight awardees during the five-year period. Each company receives a $500 minimum contract guarantee, while the cumulative value of all orders under the eight contracts cannot exceed $112,833,317. The Naval Surface Warfare Center Philadelphia Division is responsible for the contracting activity.

Other Major Navy Awards

The Navy also awarded Core Tech-HDCC-Kajima LLC of Tamuning, Guam, a $61.58 million firm-fixed-price unilateral modification to a previously awarded contract for construction of P-649, a joint communications upgrade at Naval Base Guam and Camp Blaz. The modification exercises Option Three for a Fiber SONET Ring at Marine Corps Base Camp Blaz and Naval Base Guam, bringing the contract’s total cumulative face value to $351.34 million. Work will be performed in Santa Rita and Dededo, Guam, and is expected to be completed by March 2029. Fiscal 2026 military construction funds of $10 million will be obligated at award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering Systems Command Marianas at Naval Support Activity Andersen, Guam, is the contracting activity. Agrippa Industries Inc. of Palo Alto, California, received an $18.997 million firm-fixed-price contract for the Scalable Commercial Attritable Logistics Adapted to Expeditionary Systems effort. The project proposes to develop and eventually deploy a low-cost logistics solution for military operations, adapting maritime vessels from Agrippa’s commercial design and using existing Agrippa technology. The contract covers design modifications for the military mission as well as launch, recovery, load and offload capabilities. Work will be performed in Palo Alto and is expected to be completed in November 2029. The full contract value is $18,997,203, with fiscal 2025 Navy research, development, test and evaluation funds of the same amount obligated at award. The Office of Naval Research in Arlington, Virginia, is the contracting activity.

Northrop Grumman Systems Corp. of Magna, Utah, received a $12.70 million modification to provide services for capital maintenance projects and related capital maintenance studies. The work is limited to non-severable improvements, repairs or modifications to Navy-owned land, buildings and support utilities in Magna, Utah, and is expected to be completed by April 1, 2030. Fiscal 2025 weapons procurement funds of $12.70 million will be obligated for the modification. The contract was awarded as a sole-source acquisition under 10 U.S. Code 2304(c)(1), with Strategic Systems Programs in Washington, D.C., as the contracting activity. Nemean Solutions LLC of Sierra Vista, Arizona, received a $10 million firm-fixed-price and cost-reimbursable indefinite-delivery/indefinite-quantity contract for equipment specialist services for the Program Manager, Intelligence and Cyberspace Operations. Work will be performed at Marine Corps Logistics Base Albany, Georgia, through August 2031. No funds will be obligated at award, with funding to be provided through individual task orders. The contract was not competitively procured under Federal Acquisition Regulation 6.302-5(b)(4), and the Portfolio Acquisition Executive-Marine Corps in Quantico, Virginia, is the contracting activity.

Defense Logistics Agency Awards

The Defense Logistics Agency awarded Kelvin Hughes LLC, doing business as Hensoldt North America, a maximum $57.3 million firm-fixed-price contract for Eyesafe Laser Rangefinders with containers. The five-year contract has no option periods and is scheduled for completion on August 16, 2032. The Army is the using military service, and fiscal 2026 Army working capital funds are the designated appropriation. The acquisition was conducted on a sole-source basis under 10 U.S. Code 3204(a)(1), as cited in Federal Acquisition Regulation 6.302-1. Defense Logistics Agency Weapons Support in Warren, Michigan, is the contracting activity. Bimbo Bakeries USA Inc. of Irving, Texas, received a maximum $26.1 million fixed-price, indefinite-delivery/indefinite-quantity contract for fresh bread and bakery items. The three-year contract has no option periods and covers performance in Texas and Oklahoma, with the ordering period ending October 6, 2029. The Coast Guard, Army and Air Force are the using customers, and fiscal 2026 through 2029 defense working capital funds will finance the contract. The acquisition was competitive and received two responses. Defense Logistics Agency Troop Support in Philadelphia, Pennsylvania, is the contracting activity.

The DLA also added Mercy Medical Equipment Co. of San Antonio, Texas, as an awardee to a multiple-award contract for medical equipment and accessories for the Defense Logistics Agency Electronic Catalog. The $16.5 million award was issued under contract SPE2DH-26-D-0017 against solicitation SPE2DH-21-R-0002, which was originally awarded February 10, 2022. The agency also issued two corrections to previously announced awards. The contract for US Foods Inc., doing business as US Food Service Manassas, Manassas, Virginia, valued at $69 million under SPE300-26-D-3021, was originally announced August 12 with an incorrect award date; the correct date is August 13, 2026. The $19.49 million contract for Oshkosh Defense LLC of Oshkosh, Wisconsin, under SPRDL1-26-D-0053, was announced August 14 with an incorrect award date; the correct date is August 18, 2026. The contracting activity for both actions is Defense Logistics Agency Troop Support or Weapons Support, respectively, in Philadelphia and Warren, Michigan.

U.S. Special Operations Command

U.S. Special Operations Command awarded Blue Tech Inc. of San Diego, California, a $68.97 million delivery order under NASA’s Solutions for Enterprise-Wide Procurement. The order is for a Cisco Security and Splunk 3.0 Enterprise Agreement with a 12-month base year and four 12-month option periods. The firm-fixed-price delivery order was issued under NASA SEWP Contract Number NNG15SD00B and has a total value of $68,973,746.85. Fiscal 2026 operations and maintenance funds of $13,310,169 were obligated at award. The primary performance location is U.S. Special Operations Command at MacDill Air Force Base, Florida.

Photo credit: DoW

Air Force Awards

The Air Force awarded Honeywell International Inc. of Phoenix, Arizona, a $19.81 million cost-share contract for the Aggressive Embedded Propulsion Operability effort. The contract provides for the development of advanced computational tools and processes for designing a fan module in an embedded propulsion installation. Work will be performed in Phoenix and is expected to be completed by October 18, 2030. The award resulted from a competitive acquisition in which one solicitation was mailed, and four offers were received. Fiscal 2025 research and development funds of $10,166,929 are being obligated at award. The Air Force Research Laboratory’s Air Warfare Directorate at Wright-Patterson Air Force Base, Ohio, is the contracting activity. The award was made August 17, 2026. Trusted Space LLC of Leesburg, Virginia, received a $14.83 million ceiling, cost-plus-fixed-fee contract for the Resilient and Autonomous Satellite Experimental Research program. The contract covers research, development, software maturation, testing, and on-orbit demonstration of autonomy software prototypes intended to build trust, safety, and resilience into multi-agent autonomous space systems. Work will be performed in Leesburg and at Kirtland Air Force Base, New Mexico, through August 19, 2031. The competitive acquisition received one offer, and $516,346 in fiscal 2026 research, development, test and evaluation funds were obligated at award. The Air Force Research Laboratory at Kirtland is the contracting activity. The award was made August 18, 2026.

Language Associates LLC, doing business as Diplomatic Language Services, of Arlington, Virginia, was awarded a $13 million maximum firm-fixed-price, indefinite-delivery/indefinite-quantity contract for English language training, with the award notice listing $11,748,457. The contract provides English language instructors for the Defense Language Institute English Language Center Language Training Detachment in the United Arab Emirates. Work will be performed in Dubai and is expected to be completed by September 20, 2029. The contract involves Foreign Military Sales funds, with $3,797,902 obligated at award. The acquisition was sole source, and the 338th Enterprise Sourcing Squadron at Joint Base San Antonio-Randolph, Texas, is the contracting activity. The Air Force also corrected the award date for a previously announced $75 million maximum modification for The Boeing Co. of Tukwila, Washington, under contract FA8625-16-C-6599. The modification was announced August 14, 2026, with the wrong award date; the correct award date is August 18, 2026.

Army Awards

The Army awarded Accenture Federal Services LLC of Arlington, Virginia, a $13.58 million firm-fixed-price contract for a commercial-managed service solution to automate cloud onboarding, governance and financial operations. Bids were solicited through the internet, with 14 received. Work will be performed in Arlington and is expected to be completed by August 18, 2029. Fiscal 2010 operations and maintenance Army funds of $2 million were obligated at award, and Army Contracting Command in Rock Island, Illinois, is the contracting activity. Applied Technologies Group Inc. of Huntsville, Alabama, received a $12.95 million modification to contract W31P4Q-23-F-E001 for logistics support for the Utility Helicopters Project Office. The modification brings the contract’s cumulative face value to $65.28 million. Four bids were received through internet solicitation, and work will be performed in Huntsville through October 12, 2027. The $12,948,210 obligation includes fiscal 2026 Army research, development, test and evaluation funds, fiscal 2026 Army operations and maintenance funds, 2026 Foreign Military Sales administration funds and 2010 Foreign Military Sales funds covering Albania, Ashmore and Cartier Islands, Austria, Bahrain, Brazil, Comoros, Croatia, Greece, Israel, Japan, Jordan, Latvia, Lithuania, Mexico, Slovakia, Slovenia, South Korea, Sweden, Taiwan, Thailand, Turkey and the United Arab Emirates. Army Contracting Command at Redstone Arsenal, Alabama, is the contracting activity.

Great Lakes Dredge & Dock Co. LLC of Houston, Texas, received a $12.28 million modification to contract W9127S-22-D-0026 for long-term capability and station dredging on the McClellan-Kerr Arkansas River Navigation System. The modification brings the contract’s cumulative face value to $59.13 million. Two bids were received through internet solicitation, while work locations and funding will be determined with each order. Work is expected to be completed by August 20, 2027, with the U.S. Army Corps of Engineers in Little Rock, Arkansas, as the contracting activity. Tern AI Inc. of Austin, Texas, was awarded an $11.26 million firm-fixed-price contract under a Phase III Small Business Innovation Research award for an Independently Derived Positioning System and vehicle health and maintenance system. One bid was solicited and one received. Fiscal 2026 Army research, development, test and evaluation funds of $11,263,793 were obligated at award, with work in Austin expected to conclude by August 19, 2027. The U.S. Army FUZE Contracting Center in Arlington, Virginia, is the contracting activity. Downrange Operations and Training LLC of Laramie, Wyoming, received a $9.46 million modification to contract W900KK-25-F-0024 for training, technical support and advice for THAAD missile air defense firing units. The modification brings the contract’s cumulative face value to $24.36 million. Two bids were received through internet solicitation, while work locations and funding will be determined with each order. Work is expected to be completed by December 9, 2027, with Army Contracting Command in Orlando, Florida, as the contracting activity.

The Defense Logistics Agency awarded Kelvin Hughes LLC, doing business as Hensoldt North America, a maximum $57.3 million firm-fixed-price contract for Eyesafe Laser Rangefinders with containers. The five-year contract has no option periods and is scheduled for completion on August 16, 2032.


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