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Navy awards major contract to modernize Portsmouth Naval Shipyard infrastructure

Navy awards major contract to modernize Portsmouth Naval Shipyard infrastructure

Built World

$654M NAVFAC Atlantic award to 1080 Constructors covers power and water upgrades at the Navy's oldest shipyard

3 days ago: Engineering News-Record covers award

Overview

Updated 3 days ago

Portsmouth Naval Shipyard, the Navy's oldest continuously operating yard, is getting a $654.3 million overhaul of its electrical and water systems. The Naval Facilities Engineering Systems Command (NAVFAC) Atlantic awarded the contract to 1080 Constructors of Omaha on August 27.

The yard repairs and overhauls the Navy's nuclear-powered attack submarines, and its aging utilities have started failing. Leaks in April and July 2026 caused water shortages for nearby Maine towns, and the project adds new gas generators, a 2.5-million-gallon water tank, new water mains and an auxiliary seawater system to prevent those failures.

Why it matters

If the yard's utilities keep failing, attack submarine repairs slow and nearby towns lose water. This contract is built to stop both.

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Key Indicators

$654.3M
Base contract value
Firm-fixed-price with economic price adjustment for P-1080 on-base construction.
$682.4M
Total contract value with options
Maximum dollar value including unexercised options, per SAM.gov.
$166.9M
Funds obligated at award
Fiscal 2026 military construction (Navy) funds committed at time of award.
3
Offers received
Competitive procurement conducted via SAM.gov.
December 2031
Expected completion
P-1080 is expected to be complete by December 2031.

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People Involved

Organizations Involved

Timeline

2018 September 2026

7 events Latest: 3 days ago
Tap a bar to jump to that date
  1. Engineering News-Record covers award

    Latest Media coverage

    ENR publishes story on the Portsmouth Naval Shipyard infrastructure modernization award.

  2. NAVFAC announces award publicly

    Announcement

    NAVFAC Atlantic issues press release detailing P-1080 scope, partners and expected completion.

  3. Contract awarded to 1080 Constructors

    Contract award

    NAVFAC Atlantic awards $654.3M P-1080 contract to 1080 Constructors; $166.9M obligated at award.

  4. Second severe water leak

    Infrastructure failure

    Another shipyard-originating leak prompts renewed water shortages in the Kittery area.

  5. Project details made public

    Planning

    NHPR reports $500M utility project, including new 2.5-million-gallon water tank near former naval prison.

  6. First severe water leak

    Infrastructure failure

    Severe leak from shipyard water mains causes shortages for nearby Maine residents.

  7. Navy establishes SIOP

    Program founding

    Navy creates Shipyard Infrastructure Optimization Program after study finds public shipyards can't meet submarine maintenance demand.

Scenarios

1

P-1080 completes on schedule by December 2031

Likely Resolves by Jan 31, 2032

Discussed by: NAVFAC Atlantic contract announcement; firm-fixed-price structure signals schedule confidence

Construction proceeds through 2031 with committed fiscal 2026 funding and a firm-fixed-price contract. New gas generators, the 2.5-million-gallon water tank, water mains and the auxiliary seawater system come online as planned, and the yard avoids major operational downtime.

2

Schedule slips, completion pushed past December 2031

Possible Resolves by Jan 31, 2032

Discussed by: DOD Inspector General reporting on SIOP schedule risks; Maine press coverage of utility projects

Construction at the 226-year-old yard hits site conditions, utility coordination challenges with Kittery Water District and Central Maine Power, or other delays. NAVFAC revises the completion date or issues modifications that raise the $682.4M total value.

3

Another major leak causes off-base water shortage before completion

Uncertain Resolves by End of 2031

Discussed by: Portland Press Herald and NHPR, which covered the April and July 2026 leaks

The aging water mains fail again while construction is underway. A leak from the shipyard causes a confirmed water shortage for Kittery, Eliot or York residents before the new mains and tank are operational in 2031.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2018

Shipyard Infrastructure Optimization Program launch (2018)

The Navy studied its four public shipyards and found their infrastructure could not keep pace with submarine maintenance demands. It created SIOP, a two-decade modernization effort spanning dry docks, utilities and production facilities at Norfolk, Portsmouth, Puget Sound and Pearl Harbor.

Then

SIOP became the Navy's priority infrastructure program, funding the Dry Dock 1 replacement at Portsmouth and now P-1080.

Now

The program is the umbrella for all major shipyard military construction through at least the 2030s.

Why this matters now

P-1080 is a SIOP project. The program explains why the Navy is investing heavily in the oldest of its four yards.

2021-present

Dry Dock 1 replacement at Portsmouth (2021-present)

The Navy's flagship SIOP construction project at Portsmouth is replacing Dry Dock 1, a multi-billion dollar expansion to handle Virginia-class submarines. Construction is ongoing at the 226-year-old yard.

Then

Construction continues alongside P-1080, which will supply the expanded dry dock's power and water needs.

Now

The two projects together modernize the yard's core production capabilities.

Why this matters now

P-1080's utility upgrades are designed to support the expanded dry dock and the yard's future submarine workload.

Sources

(6)