Action Kit: Constellation-Class Frigate Program Cancellation

Event Type: Contract Vehicle Termination

Severity: HIGH

Affected Sectors: Naval Shipbuilding, Defense Manufacturing, Maritime Systems

---

Immediate Actions (This Week)

• [ ] Assess direct exposure — Review your active contracts, teaming agreements, and subcontracts tied to the Constellation-class frigate program. Identify revenue at risk and notify finance/leadership immediately.
• [ ] Contact Navy contracting officers — If you hold a Constellation-related contract or task order, request formal termination guidance, close-out instructions, and settlement timelines under FAR Part 49.
• [ ] Notify teaming partners and suppliers — Alert prime contractors, subcontractors, and supply chain partners of the cancellation. Document all communications for claims and termination settlement purposes.
• [ ] Preserve termination settlement rights — Gather cost records, labor charges, and material commitments incurred through the termination date. Prepare for a termination for convenience (T4C) settlement claim under FAR 49.2 or 49.3.
• [ ] Monitor Navy statements and congressional testimony — Track official Navy and DoD announcements regarding the cancellation rationale, future frigate procurement strategy, and potential replacement programs.

---

Short-Term Actions (30 Days)

• [ ] Pivot BD strategy to alternative Navy platforms — Redirect capture resources toward active Navy shipbuilding programs (DDG-51 Flight III destroyers, Columbia-class submarines, LCS sustainment, amphibious ship modernization). Update your capability statements and past performance narratives to emphasize transferable naval shipbuilding experience.
• [ ] Engage with alternative frigate opportunities — Research international frigate programs (NATO allies, Five Eyes partners) and U.S. Coast Guard cutter programs (Offshore Patrol Cutter, Heritage-class) where Constellation-related capabilities may transfer.
• [ ] File termination settlement proposals — Submit settlement proposals to the Navy contracting officer within the timeframe specified in your contract (typically 1 year under FAR 49.206). Include all allowable costs: labor, materials, subcontractor settlements, and reasonable profit on work performed.
• [ ] Update CMMC and ITAR compliance posture — If the Constellation program drove your CMMC Level 2 certification or ITAR registration, reassess whether compliance investments remain justified based on your revised Navy portfolio. Document compliance status for future Navy opportunities.
• [ ] Conduct workforce planning — Evaluate headcount tied to Constellation work. Identify redeployment opportunities to other Navy contracts or prepare for workforce reductions with appropriate WARN Act compliance if layoffs exceed thresholds.

---

Long-Term Actions (90+ Days)

• [ ] Reposition for next-generation Navy surface combatant programs — Monitor Navy 30-year shipbuilding plans and Future Surface Combatant (DDG(X)) program developments. Position your firm for early industry engagement, RFI responses, and prototype opportunities.
• [ ] Diversify agency and platform exposure — Reduce concentration risk by expanding into Air Force, Army, or Space Force platforms. Target NAICS 336411 (aircraft manufacturing), 336992 (military armored vehicle manufacturing), or 541715 (R&D in defense systems).
• [ ] Strengthen international defense partnerships — Pursue Foreign Military Sales (FMS) opportunities and direct commercial sales (DCS) to allied navies. Ensure ITAR compliance infrastructure supports international business development.
• [ ] Invest in unmanned and autonomous maritime systems — The Navy is shifting investment toward unmanned surface vessels (USV), unmanned underwater vehicles (UUV), and autonomous systems. Develop capabilities in autonomy, AI/ML for maritime applications, and modular mission payloads.
• [ ] Document lessons learned for future capture — Analyze the Constellation cancellation for insights into Navy acquisition risk factors (cost growth, schedule delays, design maturity). Apply these lessons to bid/no-bid decisions and risk mitigation strategies on future large shipbuilding pursuits.

---

Compliance Checklist

This event primarily impacts contract administration and termination compliance rather than introducing new regulatory requirements. However, affected contractors must ensure:

• [ ] FAR 49.2 / 49.3 Termination for Convenience procedures — Follow prescribed settlement proposal formats, cost principles (FAR Part 31), and negotiation procedures. Ensure all costs claimed are allowable, allocable, and reasonable.
• [ ] DFARS 252.243-7002 Requests for Equitable Adjustment — If disputing termination terms or seeking additional compensation, comply with DFARS REA certification and cost/pricing data requirements.
• [ ] ITAR 120.1-130.17 Export Control Compliance — Maintain ITAR compliance for any technical data, defense articles, or manufacturing know-how developed under the Constellation program. Ensure proper storage, access controls, and disposal of ITAR-controlled information during contract close-out.
• [ ] NIST 800-171 / CMMC Controlled Unclassified Information (CUI) handling — Securely dispose of or return CUI (ship designs, technical specifications, operational requirements) per NIST 800-171 r2 media sanitization requirements (3.8.3). Document destruction for audit purposes.
• [ ] DFARS 252.204-7012 Safeguarding Covered Defense Information — Maintain cybersecurity protections for any Constellation-related CDI during the termination settlement period. Report any cyber incidents per DFARS 252.204-7012(c) even during close-out.
• [ ] Cost Accounting Standards (CAS) compliance — If CAS-covered, ensure termination costs are allocated consistently with your Disclosure Statement. Adjust forward pricing rates and indirect cost pools to reflect reduced Navy shipbuilding base.
• [ ] WARN Act notification requirements — If workforce reductions exceed 50 employees at a single site (or 500 across the company), provide 60-day advance notice to affected workers, state dislocated worker units, and local governments per the Worker Adjustment and Retraining Notification Act.

---

Resources

• FAR Part 49 — Termination of Contracts (https://www.acquisition.gov/far/part-49) (esp. Subpart 49.2 for fixed-price, 49.3 for cost-reimbursement)
• DFARS 249.70 — Special Termination Costs (https://www.acquisition.gov/dfars/part-249-termination-contracts)
• Navy Acquisition — Shipbuilding Programs (https://www.secnav.navy.mil/rda/Pages/default.aspx)
• ITAR Regulations (22 CFR 120-130) (https://www.pmddtc.state.gov/ddtc_public/ddtc_public?id=ddtc_public_portal_itar_landing)
• NIST 800-171 Rev 2 — Protecting CUI in Nonfederal Systems (https://csrc.nist.gov/publications/detail/sp/800-171/rev-2/final)
• CMMC Compliance Resources (https://dodcio.defense.gov/CMMC/)
• U.S. Department of Labor — WARN Act Guidance (https://www.dol.gov/agencies/eta/layoffs/warn)

---

How Cabrillo Club Automates This

Cabrillo Signals War Room has already detected this Constellation-class frigate cancellation and delivered this briefing within minutes of the announcement. The War Room continuously monitors Navy acquisition updates, congressional defense committee activity, and trade press across naval shipbuilding sectors—so you learned about this program termination before most competitors even saw the headlines. You didn't need to manually track Navy.mil press releases or set up Google Alerts; the event was automatically classified as HIGH severity, tagged with the relevant NAICS codes (336611, 336612) and agencies (DOD, Department of the Navy), and routed to your dashboard.

Cabrillo Signals Match Engine is already recalculating your opportunity pipeline scores based on this event. If you had Constellation-related keywords, Navy surface combatant experience, or frigate-specific past performance in your profile, the Match Engine has automatically downweighted those signals for future Navy frigate opportunities (since the program no longer exists) while upweighting your relevance for alternative platforms like DDG-51, LCS, or unmanned surface vessels. Your competitive positioning scores update in real time as the federal opportunity landscape shifts—no manual spreadsheet updates required.

Cabrillo Signals Intelligence Hub allows you to configure saved searches that trigger alerts when follow-on opportunities emerge from this event. Set up a search for Navy surface combatant RFIs, DDG(X) industry days, or unmanned maritime systems solicitations matching NAICS 336611/336612 and PSC 1905 (ship construction). When SAM.gov posts a new opportunity matching this profile, you'll receive an instant alert with the event context already attached—so your capture team understands why this opportunity matters in light of the Constellation cancellation.

Proposal Studio (Proposal OS) helps you rapidly pivot proposals toward alternative Navy platforms by maintaining a centralized win theme library and past performance database. When you respond to a DDG-51 modernization RFP, Proposal OS automatically surfaces your Constellation-related naval shipbuilding experience, generates compliance matrices against DFARS and NIST 800-171 requirements, and produces first-draft technical approaches that emphasize transferable capabilities (welding, combat system integration, quality assurance). The AI-powered bid/no-bid decision engine factors in this cancellation event—flagging that Navy frigate pursuits now carry elevated program risk while highlighting your stronger positioning on destroyer or submarine opportunities.

Explore these features in your Cabrillo Club dashboard to see how the platform is already working for you—monitoring the market, updating your pipeline, and preparing your team to respond to this major shift in Navy shipbuilding strategy.

---