NavyUnited States Navy
Part of Department of Defense (DoD)
Annual Spend
$170B+ annually
CMMC Level
Level 2
Key Offices
NAVSEA, NAVAIR, NIWC
Overview
The U.S. Navy procures over $170 billion annually in shipbuilding, aviation, IT systems, and combat systems. Major procurement organizations include NAVSEA for ships and submarines, NAVAIR for aircraft and weapons, and NIWC (formerly SPAWAR) for command, control, and communications systems.
Mission Focus & Priorities
The Navy's FY2026 priorities center on four critical modernization initiatives: (1) Project Overmatch implementation across fleet operations, requiring AI/ML integration for distributed maritime operations and autonomous systems integration; (2) Comprehensive zero trust architecture deployment through the Navy's Enterprise Networks program, focusing on network segmentation and identity management across 400+ shore installations; (3) Cloud migration acceleration via the Navy Enterprise Hybrid Cloud initiative, transitioning legacy systems to AWS GovCloud and Azure Government; and (4) Shipbuilding recapitalization under the 355-ship Navy goal, emphasizing Columbia-class submarine production and FFG(X) frigate delivery. NAVSEA drives 40% of procurement activity ($68B annually) through ship construction, submarine programs, and combat systems integration. NAVAIR commands 25% ($42.5B) focusing on F-35C sustainment, MQ-25 Stingray development, and Next Generation Air Dominance (NGAD) prototyping. Naval Information Warfare Systems Command (NAVWAR) manages growing IT portfolios including the Consolidated Afloat Networks and Enterprise Services (CANES) program. Emerging technology areas experiencing 15-20% budget growth include: quantum computing research through the Naval Research Laboratory, directed energy weapons via the Office of Naval Research, and hypersonic weapons development. Space and Naval Warfare Systems Center Pacific leads artificial intelligence initiatives including Project Maven integration. CMMC 2.0 significantly impacts Navy procurement, with NAVSEA implementing Level 2 requirements across all shipbuilding contracts by Q2 FY2025. The Naval Sea Systems Command's supplier base faces particular challenges given the classified nature of submarine technologies and weapons systems integration requirements.
Budget & Spending Trends
The Navy's FY2026 budget reflects $175.4B allocation, representing 3.2% increase from FY2025's $170.0B, driven primarily by shipbuilding acceleration and readiness improvements. Shipbuilding accounts for $32.1B (18.3%), research and development $19.8B (11.3%), and operations/maintenance $58.7B (33.5%). NAICS categories experiencing growth include: 336411 (Aircraft Manufacturing) up 8.4% to $24.2B, 336612 (Ship Building) increasing 12.1% to $28.6B, and 541512 (Computer Systems Design) growing 15.7% to $8.9B. Declining categories include 238990 (Other Specialty Trade Contractors) down 6.2% and 561210 (Facilities Support Services) decreasing 4.8%. Prime-to-subcontract ratios shifted toward 65% prime/35% subcontract in FY2025 from previous 70%/30%, reflecting increased small business utilization. Small business set-asides reached $51.0B (30% of total), with 8(a) contracts growing to $12.8B, SDVOSB awards at $9.2B, and HUBZone contracts reaching $4.1B. Geographic concentration centers on Virginia (Norfolk Naval Station area - 22%), California (San Diego/Long Beach - 18%), Connecticut (submarine industrial base - 12%), and Washington state (Puget Sound Naval Shipyard - 8%). The Navy exceeded its small business contracting goal of 23% by achieving 30% in FY2025, with particular strength in professional services and IT modernization categories.
How to Win Contracts with Navy
Successful Navy contractors leverage specific vehicle strategies: GSA MAS IT Schedule 70 for enterprise IT services, NASA SEWP V for hardware procurement, NITAAC CIO-SP3 for large-scale IT transformation, and DISA Encore III for telecommunications. Navy-specific vehicles include SeaPort-NxG for engineering services and OASIS for professional services. Key procurement offices include: NAVSEA (Portsmouth, Norfolk) focusing on shipbuilding and weapons systems; NAVAIR (Patuxent River) emphasizing aviation sustainment; NAVWAR (San Diego) handling IT/cybersecurity; and Naval Facilities Engineering Command managing construction. SAM.gov search strategies should target NAICS 336611 (ship building), 541512 (systems integration), 541330 (engineering services), and PSC codes R425 (engineering support), D307 (IT services), and V239 (aircraft modification). Filter for Navy activities using 'Department of the Navy' and specific commands. Teaming requirements mandate OEM partnerships for platform sustainment, with emphasis on mentor-protégé arrangements through Navy OSBP program. Past performance relevance requires: $10M+ contract experience for large shipbuilding primes, active security clearances (Secret minimum), and demonstrated DCMA/DCAA compliance. Navy uses best-value tradeoff evaluation emphasizing past performance (30%), technical approach (40%), and cost (30%). RFP cycles average 180-240 days with industry days 60-90 days pre-solicitation. BD professionals should: (1) Register for Navy Industry Days via beta.sam.gov, (2) Establish relationships with NAVSEA/NAVAIR contracting officers, (3) Pursue facility security clearances immediately, (4) Engage with prime contractors on teaming agreements, (5) Monitor NAVSEA shipbuilding forecasts quarterly, (6) Attend Navy League events for relationship building, (7) Pursue relevant IDIQs before pursuing standalone contracts.
CMMC Requirements for Navy Contractors
Navy's CMMC implementation prioritizes Level 2 requirements for all contracts involving Controlled Unclassified Information (CUI), particularly impacting shipbuilding, weapons systems, and IT modernization contracts above $7.5M. NAVSEA mandates Level 2 for all submarine construction and surface combatant contracts, while NAVAIR requires Level 2 for F-35 sustainment and classified avionics work. Timeline indicates CMMC clauses inclusion in 75% of solicitations by Q4 FY2025, with full implementation by Q2 FY2026. Subcontractor flowdown creates significant challenges across Navy's complex supply chain, particularly affecting small machine shops, electronics manufacturers, and specialized engineering firms supporting shipbuilding. Navy's compliance culture emphasizes security over speed, with contracting officers requiring detailed cybersecurity implementation plans during source selection. Early adopters include Naval Undersea Warfare Center (Newport), which began CMMC assessments in Q1 FY2025, and NAVWAR, implementing zero-trust architecture pilots requiring Level 2 compliance. Cost implications are substantial: shipbuilding contractors report 2-4% cost increases for CMMC compliance infrastructure, while IT services contractors face 6-8% cost premiums for assessment and remediation activities. The Navy's classified program requirements often exceed CMMC Level 2 standards, creating opportunities for contractors already meeting higher security thresholds. Small businesses supporting Navy missions should budget $150K-$300K for initial CMMC Level 2 compliance, with annual maintenance costs of $50K-$100K depending on system complexity and classified information handling requirements.
Top NAICS Codes
Common Contract Types
Key Procurement Offices
Recent Contract Awards
Total Awards
702
Last 30 Days
239
30-Day Value
$6.6B
Avg Amount
$27.8M
All-Time Value
$258.6B
FPDS
| Contract | Awardee | Amount |
|---|---|---|
| POWER PACK: MAXPRO TECHNOLOGIES MODEL MTPP15-W-PP111-HL-N-G-2V-RD. Brand Name Manditory | ARHAB LLC | $50K |
| Brand Name Hose Assemblies PNSY | MCGILL HOSE & COUPLING, INC. | $62K |
| Construction Site Security Services | SINGULARITY SECURITY GROUP LLC | $3.7M |
| Award Notice | PERATON INC. | $90.7M |
| PI2045M Parris Island 3rd Battalion Pond Causeway Repair | KIEWIT INFRASTRUCTURE SOUTH CO | $36.0M |
| Intent to Sole Source: Process Chemicals (Polymers and Defoamers) | HAWKINS, INC. | $147K |
| Sea Turtle Nest Monitoring and Management at Naval Base Guam and Camp Blaz Marine Corps Base | JESSY RANDY HAPDEI | $204K |
| 1377 - 1377004091099, MD16; 1377014411650, SS17 | Pacific Scientific Energetic Materials Company (California LLC) | $1.2M |
| Brand Name Z-Block Fabric PNSY | Unique Technology Systems LLC | $22K |
| Employee Recognition and Awards Ceremony 9ERAC) Requirement for NAVSUP WSS- Mechanicsburg, PA | Senators Partners, LLC | $27K |
Top Awardees
Top Contractors (FPDS)
| Contractor | Total Obligation |
|---|---|
| LOCKHEED MARTIN CORPORATION | $8.5B |
| GENERAL ELECTRIC COMPANY | $8.3B |
| PERATON ENTERPRISE SOLUTIONS LLC | $7.4B |
| L3HARRIS TECHNOLOGIES, INC. | $4.5B |
| RAYTHEON COMPANY | $4.5B |
| THE BOEING COMPANY | $4.0B |
| SIKORSKY AIRCRAFT CORPORATION | $3.4B |
| NORTHROP GRUMMAN SYSTEMS CORPORATION | $3.1B |
| BECHTEL PLANT MACHINERY, INC. | $3.1B |
| LEIDOS, INC. | $2.6B |
Get real-time alerts for Navy contracts and track opportunities matching your profile.
Get AlertsFrequently Asked Questions
How do I find contracts with Navy?
Search SAM.gov for active United States Navy solicitations. Monitor the Navy procurement forecast published annually. Register in the System for Award Management (SAM.gov) and set up saved searches for relevant NAICS codes.
Does Navy require CMMC?
Yes, United States Navy requires CMMC certification for contracts involving CUI. Most contracts require Level 2. Contractors should begin the certification process well in advance of bidding.
What are the top NAICS codes for Navy contracts?
The most commonly used NAICS codes for United States Navy contracts include 336611, 541511, 541330, 334511, 541715. These codes cover the primary contracting areas for Navy. Check SAM.gov for specific opportunities under each code.
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