Action Kit: FY2027 Navy Shipbuilding Budget Expansion

Event: 2027 defense budget could double 2026 ship requests, US Navy secretary says

Severity: HIGH

Impact Window: FY2027 budget cycle (planning begins Q2 2025)

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Immediate Actions (This Week)

• [ ] Verify NAICS code alignment — Confirm your SAM.gov registration includes primary codes 336611 (Ship Building and Repairing), 336612 (Boat Building), and relevant secondary codes (541330 Engineering Services, 541715 R&D in Physical/Engineering Sciences, 811310 Ship Repair/Maintenance)
• [ ] Review contract vehicle positioning — Audit your current SeaPort-NxG, OASIS+, and ASTRO contract vehicle status; identify gaps in task order authority for shipbuilding-related services
• [ ] Assess cybersecurity compliance posture — Conduct rapid gap analysis against CMMC Level 2 requirements (NIST 800-171) and DFARS 252.204-7012; shipbuilding contracts will require full compliance before FY2027 awards
• [ ] Map Golden Fleet initiative keywords — Update your opportunity tracking filters to capture "Golden Fleet," "Trump-class," "auxiliary vessels," "maritime industrial base," and "expeditionary support ships"
• [ ] Identify teaming partners — Reach out to prime contractors in your region with existing Navy shipbuilding contracts; auxiliary vessel programs favor distributed manufacturing and modular construction partnerships
• [ ] Review ITAR/EAR compliance — Verify your Technical Assistance Agreement (TAA) status and export control classifications for any foreign national employees or offshore subcontractors

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Short-Term Actions (30 Days)

• [ ] Develop auxiliary vessel capability statement — Create targeted marketing collateral emphasizing "easier-to-build" vessel capabilities (oilers, tenders, hospital ships, transport vessels) that align with the maritime industrial base rebuilding strategy
• [ ] Conduct past performance gap analysis — Identify which CPARS domains need strengthening before FY2027 solicitations drop; prioritize schedule performance and quality management for shipbuilding-adjacent work
• [ ] Engage with NAVSEA and Military Sealift Command — Attend industry days, request one-on-one meetings with small business liaisons, and submit capability statements to relevant Program Executive Offices (PEO Ships, PEO Integrated Warfare Systems)
• [ ] Establish NIST 800-53 compliance roadmap — For contractors targeting prime positions or classified ship systems work, begin implementing moderate-baseline security controls beyond NIST 800-171
• [ ] Build financial capacity — Meet with bonding companies and lenders to increase surety bond capacity and working capital lines; shipbuilding contracts require 10-15% performance bonds and significant cash flow management
• [ ] Map supply chain vulnerabilities — Identify critical materials (steel, aluminum, marine-grade electronics) and establish relationships with DFARS-compliant domestic suppliers; Berry Amendment and Buy American Act compliance will be heavily scrutinized
• [ ] Update proposal win themes library — Develop boilerplate content addressing: maritime industrial base revitalization, workforce development in shipyards, modular construction techniques, and accelerated delivery schedules

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Long-Term Actions (90+ Days)

• [ ] Pursue SeaPort-NxG on-ramping — If not currently a contract holder, monitor for the next on-ramp cycle (typically every 2-3 years); position for Zone 1-4 coverage in regions with active shipyards (Virginia, Mississippi, California, Washington, Maine)
• [ ] Invest in workforce certifications — Develop training programs for welders, pipefitters, marine electricians, and naval architects; pursue partnerships with maritime academies and apprenticeship programs aligned with Navy workforce development initiatives
• [ ] Establish shipyard partnerships — Negotiate teaming agreements or joint venture structures with established shipyards (public and private) to access facilities, workforce, and past performance; consider lease agreements for dry dock access
• [ ] Develop modular manufacturing capabilities — Invest in facilities and processes that support distributed manufacturing of ship modules (hull sections, propulsion systems, combat systems integration); this aligns with the "easier-to-build" auxiliary vessel strategy
• [ ] Pursue facility security clearances — For contractors targeting combat systems integration or classified ship modifications, begin the DD254 process for facility clearances (12-18 month timeline)
• [ ] Build capture pipeline for FY2028-2030 — The FY2027 budget expansion signals sustained growth; develop 3-5 year capture plans targeting follow-on auxiliary vessel classes, ship repair contracts, and lifecycle sustainment work
• [ ] Establish foreign military sales (FMS) capabilities — Golden Fleet initiatives may include allied nation sales; position for FMS work through ITAR compliance, TAA agreements, and relationships with NAVSEA International Programs Office

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Compliance Checklist

Cybersecurity & Data Protection

• [ ] CMMC Level 2 certification — Achieve third-party assessment against NIST 800-171 (110 controls); required for all contracts involving Controlled Unclassified Information (CUI) including ship designs, technical data packages, and logistics information
• [ ] DFARS 252.204-7012 implementation — Safeguarding Covered Defense Information clause; implement incident reporting procedures to DoD Cyber Crime Center within 72 hours
• [ ] NIST 800-171 System Security Plan (SSP) — Document all 14 control families; maintain evidence of continuous monitoring and annual self-assessments
• [ ] NIST 800-53 moderate baseline (for prime contractors) — Implement 325+ security controls for systems processing classified or mission-critical ship data

Export Controls

• [ ] ITAR registration and compliance — Register with Directorate of Defense Trade Controls (DDTC); maintain Technical Assistance Agreements for any foreign person access to defense articles
• [ ] EAR compliance program — Establish export control classification procedures for dual-use technologies (navigation systems, propulsion components, communications equipment)
• [ ] Foreign Ownership, Control, or Influence (FOCI) mitigation — If applicable, establish Special Security Agreements (SSA) or proxy boards to mitigate FOCI concerns

Procurement Integrity

• [ ] DFARS 252.203-7000 Requirements Relating to Compensation of Former DoD Officials — Implement screening procedures for hiring former Navy acquisition personnel
• [ ] DFARS 252.203-7002 Requirement to Inform Employees of Whistleblower Rights — Post required notices and establish reporting channels
• [ ] FAR 52.203-13 Contractor Code of Business Ethics and Conduct — Maintain written code, training program, and internal control systems for contracts exceeding $6.5M and 120 days

Manufacturing & Quality

• [ ] ISO 9001:2015 certification — Quality management system certification; increasingly required for shipbuilding subcontractors
• [ ] NAVSEA Welding Qualification — Ensure welders hold current certifications per NAVSEA Technical Publication 248
• [ ] Buy American Act compliance — Document domestic content for steel, iron, and manufactured components; maintain supplier declarations
• [ ] Berry Amendment compliance — For auxiliary vessels, ensure textiles, clothing, and food service equipment are domestically sourced

Financial & Bonding

• [ ] Adequate accounting system — Maintain DCAA-compliant accounting system capable of segregating direct/indirect costs by contract
• [ ] Surety bond capacity — Establish relationships with Treasury-listed sureties; demonstrate bonding capacity of 10-15% of contract value
• [ ] Forward pricing rate agreements — For contractors expecting significant volume increases, negotiate forward pricing rates with DCAA to streamline proposal pricing

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Resources

Official Guidance

• NAVSEA Shipbuilding Capability & Industrial Base (https://www.navsea.navy.mil/Home/Shipyards/)
• CMMC Compliance Requirements (DFARS 252.204-7021) (https://www.acq.osd.mil/cmmc/)
• NIST 800-171 Rev 2 Publication (https://csrc.nist.gov/publications/detail/sp/800-171/rev-2/final)
• ITAR Regulations (22 CFR 120-130) (https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_itar_landing)
• SeaPort-NxG Contract Vehicle Information (https://www.seaport.navy.mil/)
• Navy Small Business Programs (https://www.secnav.navy.mil/smallbusiness/Pages/default.aspx)

Solicitation Monitoring

• SAM.gov - NAICS 336611 Opportunities (https://sam.gov/search/?index=opp&page=1&naics=336611)
• NAVSEA Contract Opportunities (https://www.navsea.navy.mil/Home/Doing-Business-with-NAVSEA/)
• Military Sealift Command Acquisition (https://www.msc.usff.navy.mil/Doing-Business/)

Industry Intelligence

• Navy League of the United States - Sea-Air-Space Symposium (https://www.navyleague.org/sea-air-space)
• National Defense Industrial Association - Maritime Systems Division (https://www.ndia.org/)
• Shipbuilders Council of America (https://www.shipbuilders.org/)

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How Cabrillo Club Automates This

Cabrillo Signals War Room has already detected this high-severity budget event and delivered this briefing within minutes of the Navy Secretary's announcement. The War Room continuously monitors Congressional Budget Office reports, service secretary statements, PEO Ships program updates, and NAVSEA acquisition notices across 200+ federal sources. You didn't need to manually track Navy budget hearings or subscribe to dozens of disparate newsletters—the system identified the FY2027 shipbuilding expansion, correlated it with your registered NAICS codes (336611, 336612, 541330), and automatically generated this Action Kit with compliance requirements specific to maritime defense contracting.

Cabrillo Signals Match Engine is now automatically rescoring your entire opportunity pipeline based on this event. Any open opportunities tagged with "auxiliary vessels," "ship repair," "NAVSEA," or related keywords have been reprioritized. The Match Engine updates your opportunity scores in real time as new RFIs and sources sought notices appear on SAM.gov, factoring in the increased probability of awards in the shipbuilding sector. Your dashboard now reflects which existing pursuits align with the Golden Fleet initiative and which should be deprioritized as Navy procurement shifts toward this expanded shipbuilding focus.

Cabrillo Signals Intelligence Hub allows you to configure saved searches that automatically alert you when follow-on solicitations appear matching this event's profile. Set up alerts for NAICS codes 336611/336612 combined with agencies "NAVSEA" or "Military Sealift Command," and the system will notify you within hours of new postings. The Intelligence Hub tracks affected contract vehicles (SeaPort-NxG, OASIS+, ASTRO) and flags when task order RFPs drop under these vehicles that match your capability profile. You can also monitor specific keywords like "auxiliary vessel," "oiler," "hospital ship," or "expeditionary support" to catch early-stage market research and industry day announcements.

Proposal Studio (Proposal OS) will accelerate your response to the wave of shipbuilding solicitations expected in FY2027. When you import an RFP, Proposal OS automatically generates compliance matrices mapped to DFARS clauses, CMMC requirements, and NAICS-specific regulations. The system maintains your win theme library—including the new boilerplate content you develop around maritime industrial base revitalization and modular construction—and suggests relevant themes based on the solicitation's evaluation criteria. For technical approaches, Proposal OS uses your past performance database to generate first-draft narratives, pulling from previous ship repair contracts, engineering services work, or manufacturing projects that demonstrate relevant experience.

Proposal Studio Workflow Tracker manages the complex, multi-gate capture process for high-value shipbuilding contracts. From initial opportunity identification through post-submission, the 9-gate workflow automatically routes compliance reviews to your contracts team (for DFARS/ITAR verification), legal team (for teaming agreements and subcontractor flow-downs), and quality assurance (for ISO 9001 and NAVSEA welding certifications). The Workflow Tracker generates audit-ready documentation packages showing when cybersecurity compliance was verified, when bonding capacity was confirmed, and when supplier certifications were collected—critical for DCAA audits and post-award contract administration.

Ready to capitalize on the FY2027 shipbuilding expansion? Explore your Cabrillo Club dashboard to review rescored opportunities, configure Intelligence Hub alerts for auxiliary vessel solicitations, and prepare your Proposal Studio win theme library for the coming wave of NAVSEA and Military Sealift Command RFPs.

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