# Army and Navy Expand Defense Procurement

The Army’s 10-year enterprise agreements with Palantir and Anduril carry potential ceilings of up to $10 billion and $20 billion, respectively, but are contract vehicles rather than guaranteed spending; recent task orders indicate near-term purchasing activity. Separately, the Navy announced an Anduril contract worth up to $2.9 billion for Virginia-class submarine components, with production planned at a Maryland shipyard expected to open in 2030. A separate report of a $6.6 billion Anduril facility project in Baltimore is disputed: Anduril says the figure is a hypothetical ceiling, not an awarded amount. The continuing resolution through December 11, 2026, may constrain new starts and production increases until full-year FY2027 funding is available.

- Companies should distinguish contract ceilings from funded obligations and assess task-order activity to understand the actual near-term addressable work under the Army vehicles.
- The Navy submarine-components contract represents a specific manufacturing opportunity, while the Maryland facility timeline points to production capacity planned for 2030.
- Contractors evaluating the reported Baltimore project should verify award status and values through official DoD and Navy sources; the reported $6.6 billion figure is disputed.
- The current continuing resolution may affect the timing of new starts and production increases, so businesses should account for funding uncertainty in near-term planning.

**Jurisdictions:** federal
**Industries:** Defense & Military, Information Technology
**Topics:** Contracting Vehicles, Grants & Funding
**Published:** October 08, 2026

### Government Entities
- U.S. Army (Army)
- U.S. Navy (USN)
- U.S. Department of Defense (DoD)

### Vendors
- Anduril (prime contractor)
- Palantir (prime contractor)

### Key Quotes
> There’s no money attached to it, this is just a contract vehicle.
> — Matthew Steckman, President of Anduril

> Even a company like ours can only do so much without procurement dollars.
> — Erin Simpson, Vice President for Strategy Execution at Anduril

### Sources
- [Alex Karp, Palmer Luckey and the Pentagon’s Defense Deals | Observer](https://observer.com/2026/10/alex-karp-palmer-luckey-and-the-pentagons-new-defense-tech-order) - Observer
- ['Oops! Page Unavailable': ABC News Mysteriously Spikes Article Alleging Trump Admin Awarded Billions to Palmer Luckey's Anduril Because of Ties to Don Jr., Eric](https://freebeacon.com/media/oops-page-unavailable-abc-news-mysteriously-spikes-article-alleging-trump-admin-awarded-billions-to-palmer-luckeys-anduril-because-of-ties-to-don-jr-eric) - freebeacon.com