Pearl Harbor Naval Shipyard

USS Jefferson City departs Pearl Harbor Naval Shipyard after completing an engineering overhaul. During the shipyard period, shipyard employees and the crew performed multiple repairs, conducted preventative maintenance, and installed equipment upgrades to tactical systems and the propulsion plant. (U.S. Navy photo by Amanda R. Gray)

US Navy Awards $500m To Upgrade Pearl Harbor & Puget Sound Shipyards

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September 14, 2021

This week US Naval Facilities Engineering Systems Command (NAVFAC) awarded a $500-million contract for structural projects at Pearl Harbor Naval Shipyard Hawaii and Puget Sound Naval Shipyard in Washington state.

The five-year contract will mainly support construction, repair, and alteration projects at both shipyards and will help ensure that both shipyards — originally designed and built in the 19th and 20th centuries — are able to maintain, modernize, and repair Navy ships and submarines and return them to the fleet on time.

“Our public shipyards require investments to improve their capacity and capability,” said Capt. Warren LeBeau, a US Navy program manager. “This contract directly supports the vital roles that Pearl Harbor Naval Shipyard and Puget Sound Naval Shipyard have in maintaining and modernizing combat-ready ships to the fleet.”

The Shipyard Infrastructure Optimization Program (SIOP) is a joint effort between Naval Sea Systems Command (NAVSEA) and several other US Navy entities to modernize the infrastructure at the Navy’s four public shipyards. SIOP is tasked with repairing and modernizing dry docks, restoring shipyard facilities, and optimizing their placement, and replacing aging and deteriorating capital equipment.

“SIOP will provide critical infrastructure investments into the shipyards that enable our Navy’s lethality and ability to operate forward in the era of strategic competition,” said Rear Adm. Dean VanderLey, US Navy. “The award of this contract provides NAVFAC with the capacity and capability to plan and execute critical NAVSEA and CNIC projects at Pearl Harbor Naval Shipyard and Puget Sound Naval Shipyard to meet urgent fleet readiness needs.”

Pearl Harbor Naval Shipyard

Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility, is the largest industrial employer in Hawaii with more than 7,100 civilian, military, and contractor employees. The shipyard has an economic impact of approximately $1 billion, accounting for more than 13% of defense spending in the state. About $731 million of the shipyard’s total spending funds workforce salaries. The primarily-civilian workforce is largely comprised of long-term residents of Oahu compared to military members who typically relocate every few years.

Across fiscal years 2020 and 2021, the shipyard will spend more than $250 million in support of surface ship maintenance.

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