BAE Systems Wins $14.6 Million Navy Deal to Overhaul USS Iwo Jima

The Norfolk ship repair firm received a modification to a previously awarded contract for maintenance on the amphibious assault ship, with work slated to finish by May 2028.

First Published: August 5, 2026, 12:28 AM ET

NORFOLK, VIRGINIA — BAE Systems Norfolk Ship Repair Inc., a Virginia shipyard specializing in Navy vessel maintenance, won a $14.6 million contract modification to overhaul the amphibious assault ship USS Iwo Jima.

The award exercises options on a previously awarded contract, N00024-26-C-4405, for the ship’s Fiscal 2026 Selected Restricted Availability, according to war.gov. Fiscal 2026 operations and maintenance funds of $14.6 million were obligated at the time of award and are not scheduled to expire until two years after award, according to war.gov.

“Work will be performed in Norfolk, Virginia, and is expected to be completed by May 2028,” the Department of Defense said in the contract announcement as announced on war.gov.

The Mid Atlantic Regional Maintenance Center in Norfolk serves as the contracting activity for the modification. Selected Restricted Availabilities are scheduled maintenance periods during which a warship undergoes repairs, upgrades, and inspections at a shipyard rather than a full-scale overhaul. The USS Iwo Jima, designated LHD-7, is a Wasp-class amphibious assault ship that carries Marines, aircraft, and landing craft for expeditionary operations.

The award concentrates federal maintenance spending in Hampton Roads, one of the largest naval complexes in the world. Shipyard work of this kind supports skilled trades in the region, including welders, electricians, and machinists whose jobs depend on a steady flow of Navy availabilities. The Navy benefits by keeping an amphibious warship ready for deployment, while taxpayers carry the cost of sustaining an aging fleet.

The total value of contracts awarded to BAE Systems Norfolk Ship Repair Inc.in 2026 reached $32,023,886, according to war.gov. This award was announced among 8 Department of Defense contracts issued nationwide on August 4, 2026, according to war.gov.

For the average American reader, contracts like this one show how defense dollars flow into local economies far from Washington. Naval maintenance work anchors employment in port cities and keeps supplier networks running, from steel fabricators to electronics vendors.

Modifications to Navy ship repair contracts happen routinely. The Navy frequently exercises options on multi-year availability contracts to fund additional phases of maintenance, and Norfolk shipyards have long competed for and won this recurring work. This award follows the established pattern rather than marking a departure from it.

The next decision on further funding for the USS Iwo Jima availability rests with the Mid Atlantic Regional Maintenance Center and Navy budget officials. A date for any additional modification has not been announced.

Naval shipbuilding and repair at Norfolk stretches back more than a century, as happened before. The Norfolk Naval Shipyard, established in 1767 in nearby Portsmouth, built the nation’s first dry dock in 1833 and repaired warships through the Civil War, both World Wars, and the Cold War. During World War II, the yard employed more than 40,000 workers and serviced hundreds of vessels. The region’s enduring role as a naval repair hub secured Hampton Roads as the backbone of Atlantic fleet readiness for generations.

The total value of contracts awarded to BAE Systems Norfolk Ship Repair Inc.in 2026 reached $32,023,886. Overall, this award was announced among 8 Department of Defense contracts issued nationwide on August 4, 2026.