Navy Adds $2.409 Billion to Fluor Marine Propulsion Contract

On September 24, 2026, the U.S. Navy, through Naval Sea Systems Command (NAVSEA), awarded Fluor Marine Propulsion a $2.409 billion cost-plus-fixed-fee modification to contract N0002418C2130. The action supports Naval Nuclear Propulsion work at the Naval Nuclear Laboratory and continues performance under a previously awarded contract. It is therefore an incumbent-contract continuation, not a newly announced open solicitation or an invitation for firms to compete for the prime award. Contractors should distinguish the value of the modification from the funds obligated at the time it was issued: the modification is valued at $2.409 billion, while the Navy obligated approximately $597,900 in fiscal 2026 funding.

The work is distributed across three major Naval Nuclear Laboratory locations. Approximately 47% will be performed in Pittsburgh, Pennsylvania, 45% in Schenectady, New York, and the remaining 8% in Idaho Falls, Idaho. Pittsburgh and Schenectady together account for approximately 92% of the work, making those locations the clearest indicators of where workforce, supplier, and subcontractor activity associated with this contract may be concentrated. The award source identifies NAVSEA in Washington, D.C. as the contracting command.

The Naval Nuclear Laboratory supports the U.S. Naval Nuclear Propulsion Program, including research, development, design, testing, training, and other activities related to the Navy’s nuclear propulsion systems. Fluor Marine Propulsion operates the laboratory under contract with the U.S. Department of the Navy and the U.S. Department of Energy’s National Nuclear Security Administration (NNSA). Its work contributes to the technical infrastructure and engineering capabilities that support nuclear-powered aircraft carriers and submarines, as well as the facilities and expertise needed to sustain those capabilities.

For the GovCon market, the large modification value signals continued federal investment in the Navy’s nuclear propulsion enterprise, but it should not be interpreted as an equivalent near-term cash obligation or a new addressable prime-contract opportunity. The Navy obligated approximately $582,062 in operations and maintenance funding and $15,838 in shipbuilding and conversion funding, totaling about $597,900 in fiscal 2026 obligations. Companies seeking to participate should monitor the incumbent’s supply chain and relevant subcontracting activity, while assessing regional capacity in Pennsylvania and New York. The source identifies Fluor Marine Propulsion, headquartered in Arlington, Virginia, as the operator; it does not identify a new competition or specific subcontract awards arising from this modification.

• Action: Navy issued the modification on September 24, 2026, under existing contract N0002418C2130.
• Modification value: $2.409 billion, awarded as a cost-plus-fixed-fee modification to Fluor Marine Propulsion.
• Funding distinction: Approximately $597,900 was obligated at the time of the action; this is separate from the total modification value.
• Fiscal 2026 funding: Approximately $582,062 came from operations and maintenance, and $15,838 from shipbuilding and conversion funds.
• Work locations: Pittsburgh, Pennsylvania, accounts for 47%; Schenectady, New York, 45%; and Idaho Falls, Idaho, 8%.
• Regional implication: Pittsburgh and Schenectady together account for approximately 92% of the work, relevant to regional workforce and supplier planning.
• Procurement posture: This is continuation of an incumbent contract, not an open solicitation or a new prime-contract bidding opportunity.
• Program context: The Naval Nuclear Laboratory supports research, development, design, testing, training, and related activities for the Navy’s nuclear propulsion systems.
• Operator context: Fluor Marine Propulsion, headquartered in Arlington, Virginia, operates the laboratory under contracts with the Department of the Navy and NNSA.