HII Wins $56 Million US Navy Contract for AUKUS Engineering and Design Work

HII said on October 13 that its Newport News Shipbuilding division was awarded a $56 million US Navy contract for shipbuilding engineering and design supporting the AUKUS partnership, with an option that would lift the total to $91 million. Naval News reported the award on October 15.

The contract covers continued Foreign Military Sales support for the United Kingdom and Australia, plus engineering help on the SSN-AUKUS nuclear-powered submarine that those two countries will build. HII did not give a period of performance or contract number in its release.

HII AUKUS Engineering and Design Contract

“Our longstanding nuclear experience at NNS directly benefits the AUKUS mission to support shared security objectives,” said Bryan Caccavale, NNS vice president of program management. “We are honored to leverage that experience and contribute even more to the AUKUS partnership.”

HII said it takes a whole-company approach to AUKUS and provides services across its business divisions. This award is one piece of that effort, not the whole of it.

What the Foreign Military Sales and USIS Work Covers

The release splits the work in two. Under Foreign Military Sales (FMS) requirements, NNS will continue supporting the United Kingdom and Australia. HII lists technology insertion, engineering, supply chain and workforce development support, and digital transformation.

The second part is the United States Industry Support (USIS) effort. NNS engineers and designers will support the design of the SSN-AUKUS nuclear-powered submarine, which the United Kingdom and Australia are to build. In other words, the US yard is lending design capacity to boats it will not construct itself.

The word “continue” in the release suggests the FMS work builds on support NNS already provides. The release does not describe earlier tasks, so that reading is analysis.

HII’s AUKUS Work Compared

HII also said it is working with Australian industry and academia to build the workforce for Australia’s nuclear-powered submarine enterprise, including training thousands of engineers, maritime specialists and nuclear tradespeople.

SSN-AUKUS Submarine Timeline

The SSN-AUKUS design sits at the centre of the programme. Baird Maritime, citing the March 2023 pathway, reported that the first UK SSN-AUKUS is scheduled for delivery in the late 2030s and the first Australian-built boat in the early 2040s.

What the $91 Million Option Means

The option would add $35 million, about 62.5 percent on top of the base award. HII did not say when the Navy might exercise it, or what additional work it would fund.

The figure is small beside the cost of building submarines. It is a services and engineering contract, not a hull order. Read that way, the award shows the US side supplying design labour and supply chain help while construction happens in Britain and Australia. That reading is analysis, not an HII statement.

HII Company Profile

HII AUKUS Contract FAQ

How much is the HII AUKUS contract worth?

$56 million, with an option that would bring the cumulative value to $91 million if exercised.

Who awarded the contract?

HII said the US Navy awarded it to its Newport News Shipbuilding division.

What does the contract cover?

Shipbuilding engineering and design supporting AUKUS: continued Foreign Military Sales support for the UK and Australia, and design support for the SSN-AUKUS submarine.

Will Newport News build SSN-AUKUS submarines?

No. HII said the submarine will be built by the United Kingdom and Australia. NNS engineers and designers will support its design.

When does the work end?

The press release does not say. It gives no period of performance or contract number.