Portsmouth Naval Shipyard's $634M Infrastructure Overhaul Signals More NAVFAC Work

Portsmouth Naval Shipyard's $634M Infrastructure Overhaul Signals More NAVFAC Work

Portsmouth Naval Shipyard will receive more than $634 million in federal funding for power and water infrastructure upgrades, ENR reports, citing a Naval Facilities Engineering Systems Command Atlantic award.

Market Impact

The Navy’s oldest continually operating shipyard, located on Seavey Island between Kittery, Maine, and Portsmouth, N.H., overhauls and modernizes the Navy’s nuclear-powered attack submarines. The firm fixed-price contract, known as P-1080, was awarded to 1080 Constructures of Omaha, Neb., for on-base construction work. Construction is set to begin in October, with completion expected by December 2031, according to a NAVFAC Atlantic spokeswoman.

The project is part of the Shipyard Infrastructure Optimization Program (SIOP), the Navy’s long-term modernization effort covering its four public shipyards. Scope includes upgrades to the power distribution system, energy storage and on-site generation, substation renovation, installation of natural gas generators, and new 12-inch to 16-inch water mains. A new water tower will add capacity for periods of higher demand. “Maintaining nuclear support facilities and executing complex dry-dock operations requires redundant, high-capacity power and water utilities,” says Russ Gagner, director of SIOP at the 278-acre shipyard. NAVFAC declined to detail microgrid expansion specifics or water tower capacity, citing operational security.

The 278-acre site sits within a historic district containing 50 structures listed on the National Register of Historic Places, including a 120-year-old granite pump house with a copper roof and pumps originally designed by Thomas Edison. “Rocky subsurface conditions, a high-water table and the shipyard’s historic designation require specialized construction monitoring to protect existing structures, preserve archaeological and historic resources and meet environmental requirements throughout the project,” says Nate Maher, Portsmouth Naval Shipyard’s deputy officer in charge of construction.

What It Means for Subcontractors

• Mechanical, electrical, and utility subs should expect multiple bid packages tied to substation renovation, natural gas generator installation, and energy storage systems as P-1080 phases roll out through the December 2031 completion date.
• Water and civil crews will be needed for new 12-inch to 16-inch water main installation and construction of a new water tower, work that must proceed while the shipyard remains fully operational.
• Firms bidding on this or related SIOP packages should prepare for specialized construction monitoring requirements tied to rocky subsurface conditions, a high water table, and proximity to 50 historic structures on the National Register of Historic Places.
• General contractor 1080 Constructures of Omaha, Neb., holds the prime award, meaning mechanical, electrical, and civil subcontracting opportunities will likely flow through that firm’s subcontract packages as work sequencing is finalized.
• Crews working on-site will need to coordinate around temporary utility lines and live cutovers, since electrical and water infrastructure must be replaced while the shipyard’s daily operations, including submarine overhaul work, continue uninterrupted.
• This award is one piece of the Navy’s broader SIOP effort covering four public shipyards, suggesting similar power and water infrastructure packages may follow at the other three sites as NAVFAC continues the modernization program.