DLA awards $5 Bn contract to boost support for Virginia-class submarines

The Defence Logistics Agency (DLA) Maritime Mechanicsburg in Pennsylvania has awarded a $5 billion contract to six small businesses to strengthen logistics support for Virginia-class submarines and active surface ships, enhancing the U.S. Navy's maritime capabilities.

The new Maritime Acquisition Advancement Contract (MAAC) aims to accelerate the procurement of integrated weapons systems equipment and services for the Navy. The contract supports the advanced Virginia-class nuclear-powered fast-attack submarines, which are set to replace the ageing Los Angeles-class fleet.

The MAAC includes five one-year extension options worth $1 billion each, potentially bringing the total contract value to $10 billion over six years.

During an April 8, 2025, Senate Armed Services Committee hearing, Navy officials stressed the importance of building two Virginia-class submarines annually to maintain undersea dominance. Strengthening the supply chain was cited as critical to achieving that goal.

“This contract supports a mission that’s a top priority at the highest levels,” said Elizabeth Allen, Deputy Director of DLA Maritime Mechanicsburg, referring to Defence Secretary Pete Hegseth’s strong backing of the Virginia-class submarine program.

The MAAC is the result of a yearlong competitive acquisition process that received nine bids. Contracting Officer Brian Stevens said the contract exemplifies the Department of Defence’s “speed over process” philosophy.

“We built this acquisition vehicle to do more with less, enabling larger, faster contracts aligned perfectly with the Virginia-class initiative,” Stevens said. “I’m extremely proud of the team’s effort and the outcome.”

The six selected small businesses are now poised to play a crucial role in supporting the U.S. Navy’s most advanced undersea and surface platforms, reinforcing America’s maritime edge.