Pennsylvania Lands $5B Submarine Supply Deal with Potential to Hit $10B

The Defense Logistics Agency (DLA) in Mechanicsburg, Pennsylvania, has awarded six companies a $5 billion contract—with the potential to reach $10 billion—to support the U.S. Navy’s submarine supply chain. The contract aims to ramp up production and reduce delays in building Virginia-class nuclear submarines.

The award is part of the DLA’s Maritime Industrial Capability and Commercial Procurement Program (MICC), designed to modernize defense supply chains and improve readiness by giving the Navy faster access to the parts and components needed to maintain and expand the submarine fleet.

The companies selected for the contract include:

  • Culmen International
  • SupplyCore
  • ASRC Federal
  • Valiant Defense Services
  • Planate Management Group
  • Echelon Services

The new contract uses an Indefinite Delivery/Indefinite Quantity (IDIQ) structure with five one-year base periods and five one-year option periods. According to DLA, the goal is to enable rapid sourcing of hard-to-find parts, maintenance services, and specialized components needed for submarine production…

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