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
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Overview
Updated 1 hour agoPortsmouth 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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People Involved
Organizations Involved
NAVFAC Atlantic procures and manages Navy shore infrastructure on the East Coast, headquartered in Norfolk, Virginia.
Omaha, Nebraska-based construction contractor selected as prime for the shipyard's on-base utility upgrades.
The Navy's long-term effort to modernize infrastructure at its four public shipyards to meet current and future submarine maintenance demand.
Municipal utility partnering with the Navy on off-base water system improvements benefiting civilian residents.
Timeline
2018 September 2026
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Engineering News-Record covers award
Today Media coverageENR publishes story on the Portsmouth Naval Shipyard infrastructure modernization award.
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NAVFAC announces award publicly
AnnouncementNAVFAC Atlantic issues press release detailing P-1080 scope, partners and expected completion.
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Contract awarded to 1080 Constructors
Contract awardNAVFAC Atlantic awards $654.3M P-1080 contract to 1080 Constructors; $166.9M obligated at award.
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Second severe water leak
Infrastructure failureAnother shipyard-originating leak prompts renewed water shortages in the Kittery area.
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Project details made public
PlanningNHPR reports $500M utility project, including new 2.5-million-gallon water tank near former naval prison.
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First severe water leak
Infrastructure failureSevere leak from shipyard water mains causes shortages for nearby Maine residents.
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Navy establishes SIOP
Program foundingNavy creates Shipyard Infrastructure Optimization Program after study finds public shipyards can't meet submarine maintenance demand.
Historical Context
2 moments from history that rhyme with this story — and how they unfolded.
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.
SIOP became the Navy's priority infrastructure program, funding the Dry Dock 1 replacement at Portsmouth and now P-1080.
The program is the umbrella for all major shipyard military construction through at least the 2030s.
P-1080 is a SIOP project. The program explains why the Navy is investing heavily in the oldest of its four yards.
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.
Construction continues alongside P-1080, which will supply the expanded dry dock's power and water needs.
The two projects together modernize the yard's core production capabilities.
P-1080's utility upgrades are designed to support the expanded dry dock and the yard's future submarine workload.
