# Navy Expands Pascagoula Submarine Capacity

The U.S. Navy and Australia are funding a $60 million expansion at Bird-Johnson Propeller Company’s Pascagoula, Mississippi, site to increase manufacturing capacity for submarine propulsors, propellers, rotors, and related components. Groundbreaking took place in October 2026. The Navy’s $27 million contribution includes $22 million from Australia’s AUKUS Pillar I contribution to the U.S. Submarine Industrial Base and $5 million in U.S. appropriated funds. The expansion is intended to support Virginia-class submarine propulsion production; the signals identify no open solicitation or procurement contact.

- The project adds a 38,000-square-foot manufacturing facility and represents investment in the submarine industrial base, rather than a currently advertised contract opportunity.
- Suppliers of materials, components, manufacturing equipment, and related services can assess whether their capabilities align with the facility’s expanded production needs; the signals do not specify procurement plans or subcontracting requirements.
- Contractors should distinguish this capacity investment from an open solicitation: no bid deadline, contract number, or contact for supplier inquiries is provided.

**Jurisdictions:** federal
**Industries:** Defense & Military, Construction & Infrastructure
**Topics:** Physical Infrastructure, Grants & Funding
**Published:** October 21, 2026

### Government Entities
- United States Navy (U.S. Navy)
- U.S. Submarine Industrial Base Program Office (U.S. SIB)
- Australian Embassy

### Vendors
- Bird-Johnson Propeller Company (Manufacturer and site of the facility expansion)
- Fairbanks Morse Defense (Manufacturer associated with the facility project)
- BlueForge Alliance (Funding and implementation intermediary)

### Key Quotes
> Investments like this help strengthen the industrial foundation that underpins our submarine force. Australia’s contribution to the SIB augments the funds provided by Congress and allows us to fund programs like this in addition to other critical investments that will deliver warfighting capability to the Fleet.
> — Capt. Sal Suarez, Deputy Program Manager for the U.S. SIB program

> This milestone demonstrates the continued momentum and shared commitment of Australia and the United States to deliver Australia’s conventionally armed, nuclear-powered submarine capability.
> — Phoebe Greentree, Minister-Counsellor for AUKUS at the Australian Embassy

### Sources
- [
	Critical Industrial Base Facility Breaks Ground Thanks to Australian Submarine Industrial Base Contribution > United States Navy > display-pressreleases
](https://www.navy.mil/Press-Office/Press-Releases/display-pressreleases/Article/4630178/critical-industrial-base-facility-breaks-ground-thanks-to-australian-submarine/) - NAVY
- [Fairbanks Morse Defense Starts Building New Sub Component Facility With AUKUS Investment - Defense Daily](https://www.defensedaily.com/fairbanks-morse-defense-starts-building-new-sub-component-facility-with-aukus-investment/navy-usmc) - Defense Daily
- [
	Critical Industrial Base Facility Breaks Ground Thanks to Australian Submarine Industrial Base Contribution > United States Navy > display-pressreleases
](https://www.navy.mil/Press-Office/Press-Releases/display-pressreleases/Article/4630178/critical-industrial-base-facility-breaks-ground-thanks-to-australian-submarine) - navy.mil