Navy Awards $634M for Maine’s Portsmouth Shipyard Infrastructure Upgrades

Major power and water improvements will modernize the historic shipyard and strengthen support for nuclear submarine operations.

Source : Creative Commons. The appearance of U.S. Department of War (DoW) visual information does not imply or constitute DoW endorsement.

September 15, 2026

Author : Alex Bustillos

The Portsmouth Naval Shipyard is one of the United States' oldest continuously operational federal facilities. 

Over two centuries old, the shipyard sits on Seavey Island. Operated by the   Naval Sea Systems Command (NAVSEA), it carries out the overhaul, repair, and modernization of the U.S. Navy’s nuclear-powered attack submarine fleet.

The Naval Facilities Engineering Systems Command Atlantic (NAVFAC Atlantic), meanwhile, manages planning, design, construction, contingency engineering, and public works support for U.S. Navy shore facilities. Importantly, NAVFAC Atlantic has awarded Portsmouth Naval Shipyard a $634 million contract to upgrade the power and water systems.

This NAVFAC Atlantic project is part of the Shipyard Infrastructure Optimization Program (SIOP), part of the US Navy’s long-term effort to modernize its four public shipyards. 

The project scope includes upgrading the power distribution system, energy storage and on-site generation, substation renovation, installing natural gas generators, and adding new 12-inch to 16-inch water mains. 

Russ Gagner, the director of SIOP, explains, “Maintaining nuclear support facilities and executing complex dry-dock operations requires redundant, high-capacity power and water utilities.” To address this concern, the project will be adding a new water tower.

The 278-acre shipyard is in a historic district with 50 structures listed on the National Register of Historic Places, including a granite pump house designed by Thomas Edison.

The primary contractor on this fixed-price contract, labeled P-1080, is Omaha, Nebraska-based 1080 Constructures. Work on the project is set to begin in October and has a tentative completion timeline of December 2031. As the work progresses, mechanical, electrical, and utility contractors can expect several subcontracting opportunities.

The project will continue even as the shipyard’s daily operations run uninterrupted. 

Maine is seeing a host of projects strengthening its ports and harbor facilities. Another marine infrastructure development project in the area is the Lubec Safe Harbor Project.

The Maine Department of Transportation (MDOT) awarded the project to Gordon Contracting Inc. of Sangerville for $25.7 million. This was the lowest bid and is significantly less than the available funding of $46.7 million, as the project was scaled down from the original design.

In November 2019, the US DOT’s Maritime Administration (MARAD) awarded $19.65 million, with an additional $10 million in February 2023. MDOT is covering the remaining funding. The project scope includes a 600-foot-long rock riprap breakwater, 17 floats for boats supported by 15 steel piles, a 300-foot-long boat launch, parking for 20 vehicles, and 14 vehicles with trailers.

The project is estimated to take two years to complete, with a target completion date of June 30, 2028; however, a start date has yet to be announced.

The use of the remaining $21 million in funding has yet to be decided. Once completed, the breakwater will provide mariners with a sheltered area against damaging storms.

Category : Federal Government

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