Navy Awards $536M Contract for First-Ever Commercial Dismantling of Nuclear-Powered Aircraft Carrier

Published on: June 3, 2025 at 6:50 PM
The nuclear-powered aircraft carrier USS Enterprise (CVN-65), conducts an underway replenishment with the Military Sealift Command fast combat support ship USNS Supply (T-AOE 6), while the guided-missile destroyer USS Arleigh Burke (DDG-51), and the guided-missile cruiser USS Vicksburg (CG-69), follow behind. (Image credit: U.S. Navy)

U.S. Navy’s Iconic Enterprise Nuclear Carrier Set for Dismantling in Alabama, Freeing Shipyard Space and Cutting Costs by $1 Billion

The U.S. Navy has officially signed off on a historic contract that will see the dismantling and disposal of its first nuclear-powered aircraft carrier conducted entirely by the private sector. The $536.7 million deal, awarded to NorthStar Maritime Dismantlement Services LLC, marks a significant turning point in naval logistics, legacy management, and nuclear decommissioning strategy.

USS Enterprise (CVN 65), the world’s first nuclear-powered aircraft carrier, was commissioned in 1961 and served for over five decades. She saw extensive action from the Cold War through to post-9/11 operations, becoming one of the most recognizable symbols of American naval power. The “Big E”  was deactivated on Dec. 1, 2012, after her return from regular deployment to the U.S. 5th and 6th Fleet areas of responsibility to conduct maritime security operations, theater security cooperation efforts and missions in support of Operation Enduring Freedom started on Mar. 11, 2012. It was then defueled by 2017, but her final fate remained in limbo until now.

The USS Enterprise (CVN 65) transits the Strait of Messina on its way to Naples during her last cruise in 2012 (Image credit: U.S. Navy)

Under the new firm-fixed-price contract, CVN 65 will be completely dismantled in Mobile, Alabama, where NorthStar will carry out the work in partnership with Modern American Recycling and Radiological Services (MARRS). The project is expected to be completed by November 2029. Waste Control Specialists, based in Andrews, Texas, will handle disposal of low-level radioactive and mixed hazardous waste, while all other materials will be recycled or safely discarded in compliance with relevant environmental regulations.

This effort not only represents a practical solution to managing a legacy nuclear vessel but also reflects a broader shift in how the Navy approaches industrial capacity. By outsourcing the dismantling process, the Navy is expected to save up to $1 billion in comparison to conducting the work at public shipyards. More importantly, this approach allows the service to prioritize scarce shipyard resources for the maintenance and modernization of the active fleet, a growing concern as the U.S. continues to field new vessels under its ambitious shipbuilding plan.

The competition for the dismantling contract saw three offers submitted through the Procurement Integrated Enterprise Environment, showing notable interest from industry players in what is likely to be a precedent-setting program for future nuclear vessel disposals.

USS Enterprise (CVN 65) sits pierside at Newport News Shipbuilding in 2018 following its decommissioning in February 2017. (U.S. Navy photo by Mass Communication Specialist 2nd Class Cat Campbell/RELEASED)

Here’s the notice about the contract award published by the Department of Defense:

NorthStar Maritime Dismantlement Services LLC, Vernon, Vermont, is awarded a $536,749,731 firm-fixed-price contract (N00024-25-C-4135) for the dismantling, recycling, and disposal of Ex-Enterprise (CVN 65). Under this contract CVN 65 will be dismantled in its entirety, and all resulting materials will be properly recycled or disposed of. Specifically, hazardous materials, including low-level radioactive waste, will be packaged and safely transported for disposal at authorized licensed sites. Work will be performed in Mobile, Alabama, and is expected to be completed by November 2029. Fiscal 2025 operations and maintenance (Navy) funds in the amount of $533,749,731 will be obligated at the time of award, all of which will expire at the end of the current fiscal year. This contract was competitively procured via the Procurement Integrated Enterprise Environment solicitation module, with three offers received. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

 

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David Cenciotti is a journalist based in Rome, Italy. He is the Founder and Editor of “The Aviationist”, one of the world’s most famous and read military aviation blogs. Since 1996, he has written for major worldwide magazines, including Air Forces Monthly, Combat Aircraft, and many others, covering aviation, defense, war, industry, intelligence, crime and cyberwar. He has reported from the U.S., Europe, Australia and Syria, and flown several combat planes with different air forces. He is a former 2nd Lt. of the Italian Air Force, a private pilot and a graduate in Computer Engineering. He has written five books and contributed to many more ones.
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