The Naval Nuclear Propulsion Project has received a $2.4 billion contract to sustain the research, engineering and operational capabilities supporting the US Navy’s nuclear-powered submarine and aircraft carrier fleets.
The US Department of Defense awarded Fluor Marine Propulsion LLC the contract on September 24, 2026. The award supports work at the Naval Nuclear Laboratory, which develops naval nuclear propulsion technology and trains specialist personnel.
According to the contract notice released on October, the work will span facilities in Pennsylvania, New York and Idaho. The agreement highlights the importance of maintaining specialized nuclear infrastructure as the US continues supporting its naval fleet and national security priorities.
Naval Nuclear Propulsion Project Strengthens Existing Facilities
The contract covers Naval Nuclear Propulsion Program work at the Naval Nuclear Laboratory rather than a standalone new-build construction project. Nevertheless, the award supports the continued operation of specialized laboratories, testing facilities and technical infrastructure.
Fluor Marine Propulsion manages and operates the laboratory under government contracts. The company is a wholly owned special-purpose subsidiary of Fluor Corporation, a Fortune 500 engineering and construction company.
The laboratory operates across several government-owned sites, including Bettis Atomic Power Laboratory in Pennsylvania, Knolls Atomic Power Laboratory in New York, the Kenneth A. Kesselring Site and the Naval Reactors Facility in Idaho.
These facilities support research, testing, technical development and training for naval nuclear propulsion systems. Their work helps the Navy maintain the safety and reliability of reactors powering submarines and aircraft carriers.
Furthermore, the laboratory’s responsibilities extend beyond routine facility management. Its engineers and scientists develop propulsion technology, examine nuclear materials and provide technical support throughout the naval reactor lifecycle.
Consequently, continued investment in these capabilities supports the infrastructure and specialist expertise required for long-term naval operations. The contract also reinforces the importance of maintaining facilities that handle highly specialized nuclear research and testing.
Naval Nuclear Propulsion Project Builds on Long-Term Partnership
Fluor Marine Propulsion began managing the Naval Nuclear Laboratory in 2018 after the US Navy’s Naval Sea Systems Command and the Department of Energy’s National Nuclear Security Administration selected the company.
The original contracts established a ten-year performance period, including options, with a combined potential value of approximately $30 billion. The government subsequently extended Fluor’s contract in 2023, securing operations through 2028.
The latest $2.4 billion award continues this established relationship. However, the contract value should not be interpreted as the budget for constructing a new nuclear laboratory or reactor facility.
Instead, the work supports the management and operation of the laboratory and its naval nuclear propulsion responsibilities. This distinction matters because the programme depends on sustained research, technical services, equipment, facilities and trained personnel.
The laboratory employs nearly 8,000 engineers, scientists, technicians and support personnel across its operations. Their work supports the development of propulsion technology and training for sailors who operate nuclear-powered naval vessels.
As a result, the award reinforces an existing technical and operational network rather than introducing an entirely new construction programme. It also underscores the continuing role of specialised infrastructure in maintaining the US Navy’s nuclear propulsion capabilities.
The US Navy’s project highlights continued investment in nuclear technology, specialised facilities and the infrastructure supporting America’s nuclear programmes. A similar trend is emerging in the civilian energy sector, where existing nuclear facilities are attracting major funding to extend their operational life and meet rising electricity demand.
The Crane Clean Energy Center, formerly Three Mile Island Unit 1, received a $1 billion US Department of Energy loan to support refurbishment and restart activities. The project aims to restore approximately 835 MW of generating capacity, with Constellation Energy targeting a return to service in 2027. Both developments demonstrate how investment in existing nuclear infrastructure can support long-term energy and national security priorities.
Project Fact Sheet
Name: Naval Nuclear Propulsion Program and Naval Nuclear Laboratory operations.
Contract value: $2.4 billion.
Award date: September 24, 2026.
Type: Naval nuclear research, engineering, laboratory operations and technical support.
Primary purpose: Support naval nuclear propulsion technology and the operational reliability of nuclear-powered submarines and aircraft carriers.
Main locations: Pittsburgh, Pennsylvania; Schenectady, New York; and Idaho Falls, Idaho.
Key facilities: Bettis Atomic Power Laboratory, Knolls Atomic Power Laboratory, Kenneth A. Kesselring Site and Naval Reactors Facility.
Workforce: Nearly 8,000 engineers, scientists, technicians and support personnel across the Naval Nuclear Laboratory.
Contract background: Fluor Marine Propulsion began managing and operating the laboratory in 2018.
Previous extension: Fluor announced a five-year extension in October 2023, covering the existing programme through 2028.
Construction scope: The award supports existing facilities and technical operations; a new-build construction package has not been identified in the available reporting.
Client organisations: US Department of the Navy and US Department of Energy, through their naval nuclear propulsion partnership.
Project Team
Contracting authority: Naval Sea Systems Command (NAVSEA).
Government nuclear programme oversight: National Nuclear Security Administration (NNSA), within the US Department of Energy.
Naval nuclear programme: Naval Reactors, a joint Department of Energy and Department of the Navy programme.
Contractor: Fluor Marine Propulsion LLC.
Parent company: Fluor Corporation.
Laboratory operator: Fluor Marine Propulsion LLC.
Research and technical delivery: Naval Nuclear Laboratory personnel.
Facility operations: Naval Nuclear Laboratory teams across its Pennsylvania, New York and Idaho locations.
End users: US Navy submarine and aircraft carrier crews and naval nuclear operators.
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