The Navy’s work with BlueForge Alliance is aimed at strengthening the U.S. submarine industrial base—the suppliers, shipbuilders, workforce, manufacturing capacity and support systems behind submarine construction and sustainment. It is not a project to build or upgrade a particular submarine base. The often-cited $500 million figure refers to a June 2024 investment report; a separate, larger BlueForge contract announced in September 2024 was described by outlets with totals ranging from $950 million to a ceiling of $980.7 million.
What BlueForge Alliance is doing
BlueForge Alliance serves as a coordinating partner for industrial-base work rather than as a submarine-base construction contractor. The Navy’s stated objectives include expanding the capacity needed to build and sustain submarines, addressing supplier constraints, and developing the workforce and manufacturing capabilities that support that production.
Reporting on the September 2024 award describes work across several areas:
- Supply chains: diversify and strengthen suppliers that support submarine programs.
- Workforce: attract workers nationally and regionally, expand targeted training capacity, and improve retention.
- Manufacturing technology: scale capabilities such as additive manufacturing and robotics or automation.
The Navy spokesperson described the contract as supporting “urgent ongoing efforts” in supply chains, workforce attraction, training capacity and enterprise-wide retention. Breaking Defense reported the statement on September 11, 2024.
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Why reports cite both $500 million and nearly $1 billion
The figures refer to different announcements and should not be treated as competing totals for one confirmed payment. In June 2024, Breaking Defense reported that the Navy had invested about $500 million in BlueForge-related industrial-base work. In the same account, Navy submarine-program official Matt Sermon said the FY2024 national security supplemental included $605 million for supplier development and that he expected to engage projects through BlueForge. That was a report of planned engagement and an official’s remarks, not an audit of final spending. Breaking Defense’s June 7, 2024 account quoted Sermon describing the $605 million funding.
In September, the Navy announced a larger contract for BlueForge. Contemporary coverage did not use one uniform figure: Breaking Defense described a $950 million contract, while Defense One reported a ceiling of up to $980.7 million. Another account described the award as $950.7 million. These are reported contract or ceiling descriptions, not evidence that the entire amount was obligated or spent. The available reporting does not establish the final obligated total or subsequent performance status.
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| Figure | What it describes | Qualification |
|---|---|---|
| About $500 million | BlueForge-related industrial-base investment reported in June 2024 | Breaking Defense’s account of Navy activity; not a final expenditure audit. |
| $605 million | FY2024 national security supplemental supplier-development funding cited by Navy official Matt Sermon | Reported June 2024; Sermon said he expected to engage projects via BlueForge, not that all funds had been spent through it. |
| $950 million; $950.7 million; up to $980.7 million | Descriptions of the September 2024 BlueForge contract or its ceiling | Different figures reported by Breaking Defense and Defense One; they should not be collapsed into a single confirmed obligation. |
| Approximately $500 million | Foreign military sales portion associated with the September contract | As described by a Navy spokesperson in September 2024 reporting; tied to anticipated Australian demand. |
How Australia factors into the September contract
About $500 million of the September contract was associated with foreign military sales, according to a Navy spokesperson quoted by Breaking Defense. The work was expected to add U.S. industrial capacity for Australia’s anticipated purchase of three or five Virginia-class submarines. That was an expectation described in 2024 reporting, not confirmation that Australia completed such a procurement. The broader effort also supports U.S. submarine construction and sustainment.
What the award says about procurement and workforce needs
The September award was reported as a noncompetitive, sole-source procurement. A contemporaneous report quoted the Pentagon’s rationale as “only one responsible source and no other supplies or services will satisfy agency requirements.” That describes the procurement as reported at the time; it does not establish later contract performance or spending.
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The initiative responds to capacity and workforce constraints across the submarine supply chain. Reporting cited a Navy aspiration to add 100,000 shipbuilders over ten years. That number is a stated goal, not a verified count of people hired or trained. BlueForge’s described role is to coordinate efforts across suppliers, manufacturers, shipbuilders, workforce programs and technology capabilities.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.A later Navy technology partnership
In July 2025, Defense Daily reported that Palantir Technologies would use its Warp Speed digital data platform in partnership with BlueForge Alliance to help the Navy accelerate warship production. The initiative was described as funded by the Navy’s Maritime Industrial Base program. The report connects BlueForge to a later enterprise technology effort; it does not establish that the platform is a consumer product or that it has already produced measurable production gains. Defense Daily’s July 2025 report describes the partnership.
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