# Navy Awards BAE $138M Submarine Propulsor Contract

The U.S. Navy awarded BAE Systems a **$138 million** contract to manufacture Virginia-class submarine propulsor assemblies and provide related engineering, replacement parts, and support services. The ordering period runs through September 2032, and BAE facilities in Minneapolis, Louisville, and Jacksonville are supporting the Navy’s target of producing two propulsor sets annually. For procurement teams and contractors, the award establishes a multiyear production and sustainment opportunity tied to submarine fleet requirements.

- The contract covers both assemblies and supporting engineering, parts, and services, creating demand across production and sustainment activities.
- Suppliers serving BAE’s Minneapolis, Louisville, and Jacksonville operations may find relevant opportunities in component supply and related support.
- The Navy’s stated target of two propulsor sets annually gives industry a concrete production context for capacity and supply-chain planning through the ordering period.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Published:** November 13, 2026

### Government Entities
- U.S. Navy (USN)

### Vendors
- BAE Systems (awardee)

### Key Quotes
> BAE Systems is delivering the complex components essential to U.S. undersea dominance.
> — Jason Casciotti, Vice President of Weapon Systems at BAE Systems

### Sources
- [BAE Books $138M Navy Submarine Propulsor Contract](https://www.executivebiz.com/articles/bae-138m-navy-virginia-submarine-propulsor-contract-award) - ExecutiveBiz