Jane Edwards 
- BAE Systems has kept pace with the Navy’s two-set annual propulsor goal
- Orders under the contract may continue through September 2032
- The 2027 Defense R&D Summit will explore supply chains, maritime sensing and more
BAE Systems has received a $138 million contract from the U.S. Navy to continue manufacturing propulsors for Virginia-class submarines.
Sustaining submarine production depends on a resilient industrial base and continued investment in advanced defense technologies. The Potomac Officers Club’s 2027 Defense R&D Summit on Feb. 4 will bring together defense leaders and industry executives to discuss supply chain visibility and critical materials, multisensor intelligence for the maritime domain, unmanned systems, trusted AI and autonomy, and more. Save your seat now to hear how the Pentagon is shaping its research and development priorities.
The company said Thursday it is meeting the Navy’s target of producing two Virginia-class propulsor sets each year and has supplied major propulsor assemblies for every submarine in the class to date.
What Is the Scope of the Navy Contract?
Under the contract, BAE will manufacture propulsor assemblies and provide engineering services, replacement parts and associated support services. The ordering period runs through September 2032.
The company said it has invested in advanced manufacturing and engineering at its facilities in Minneapolis; Louisville, Kentucky; and Jacksonville, Florida, to help the Navy keep pace with its 1+2 submarine production schedule.
What Did BAE VP Jason Casciotti Say About the Contract Award?
“BAE Systems is delivering the complex components essential to U.S. undersea dominance,” said Jason Casciotti, vice president of weapon systems at BAE Systems.
Casciotti noted that the company’s expanded facilities and skilled workforce are focused on strengthening the submarine force. He added that BAE’s record of producing these components ensures the Navy has a dependable partner for propulsor manufacturing.
What Other Navy Work Has BAE Systems Secured?
The propulsor award builds on BAE’s support for the Navy’s undersea and strategic programs. In September, the company booked a $94.6 million contract for engineering, technical and programmatic services on the Nuclear-Armed Sea-Launched Cruise Missile program, with work running through September 2028. A week later, BAE won a $99.2 million sole-source contract for systems engineering and integration support to the Navy’s Portfolio Acquisition Executive Strategic Systems Programs, building on a 2024 contract covering Ohio-, Columbia-, Vanguard- and Dreadnought-class submarines.
BAE Systems Technology Solutions & Services also secured a Navy contract worth up to $252.6 million to deliver shipboard radio communication systems for Aegis destroyers. The company will assemble and test the systems in St. Inigoes, Maryland, before shipping them to shipbuilders. Separately, BAE received a $62 million contract to establish depot-level maintenance for the E-2D Advanced Hawkeye’s identification friend or foe system at Fleet Readiness Center Southwest in California.
On the ship repair side, BAE Systems Maritime Solutions landed a contract worth up to $255.9 million for fiscal 2026 maintenance and modernization work on USS Iwo Jima. The business also secured a $149.8 million contract for the USS Boxer’s fiscal 2027 selected restricted availability, with options that could raise its value to $180 million. Most recently, the Navy awarded a BAE business a littoral combat ship maintenance contract with a potential value of $60.4 million and work expected to run through April 2028. Austal USA received a separate award, bringing the combined value to about $105.3 million.
