Oceaneering Secures U.S. Navy Component Repair Program Deal

Oceaneering International, Inc. OII has announced a major milestone for its Aerospace and Defense Technologies (ADTech) segment, as its Marine Services Division has been awarded an indefinite-delivery/indefinite-quantity (“IDIQ”) contract by the Naval Supply Systems Command Weapon Systems Support (NAVSUP WSS) in Mechanicsburg, PA. This prestigious contract includes repairing valves and actuators for Virginia-class and Los Angeles-class submarines under the U.S. Navy’s Corporate Component Repair Program (“CCRP”).

High-Value Submarine Support Contract Awarded

The recently awarded contract has a base value of up to $86 million for an initial two-year period. It also includes an additional three-year extension option. Work will be conducted at Oceaneering’s specialized repair facilities, where advanced engineering infrastructure and experienced technical personnel are dedicated to defense-grade overhaul operations.

This award places Oceaneering among three selected suppliers entrusted with the vital responsibility of restoring key mechanical components that ensure submarine reliability and mission success. The contract also reinforces Oceaneering’s role as a dependable long-term partner in sustaining the Navy’s most advanced undersea platforms.

Key Role in the Corporate Component Repair Program

The CCRP serves as a centralized strategy designed to standardize the repair and overhaul process for high-value submarine parts. This performance-based framework accelerates turnaround times, controls maintenance costs and improves component traceability across the Navy’s fleet.

With more than eight years of uninterrupted service under the CCRP, Oceaneering has consistently delivered high-precision component repairs that adhere to the Navy’s strict quality and performance benchmarks. The company’s continued participation highlights a proven ability to meet the demands of a complex and mission-critical supply chain.

Precision Engineering for Virginia-Class and Los Angeles-Class Submarines

The Virginia-class and Los Angeles-class submarines represent the forefront of American naval capability, deployed worldwide for surveillance, deterrence and special operations support. Each relies on a network of finely tuned systems, including valves and actuators that regulate fluid dynamics, propulsion, environmental control and emergency functions.

Repairing these components requires exacting technical standards, with processes that include disassembly, non-destructive testing, materials assessment, re-machining and final performance validation. Oceaneering’s facilities are equipped with cutting-edge diagnostic tools and certified procedures designed to restore every component to like-new operational status, meeting or exceeding OEM specifications.

Dedicated Repair Operations at Oceaneering Facilities

Work under the contract will be performed entirely at Oceaneering-owned locations, leveraging a vertically integrated operation model that allows for strict quality oversight and process consistency. These facilities are optimized for component-level service on submarine systems, offering specialized clean rooms, pressure test chambers, metallurgical labs and high-tolerance machining environments.

This centralized control ensures that each repaired unit undergoes standardized inspection, adheres to precise naval engineering criteria and supports uninterrupted submarine operations post-installation.

Contract Funded Through Navy Working Capital Funds

Using Navy Working Capital Funds, the contract will be sponsored, with a minimum payment due upon award. This funding structure ensures uninterrupted program continuity and provides the resources necessary for rapid mobilization and sustained repair output throughout the contract’s duration.

By obligating funds upon award, the Navy guarantees immediate execution of component servicing and enables seamless support for scheduled maintenance cycles, unscheduled repairs and mission-critical readiness needs.

Statement From Aerospace and Defense Leadership

Bill Merz, senior VP of ADTech, highlighted that the award reflects the team's expertise, dedication and consistent support for the U.S. Navy's undersea dominance through high-quality and timely repair services. He expressed enthusiasm for future opportunities.

This statement reflects a clear organizational focus on supporting defense priorities through precision execution, responsiveness and superior technical capabilities.

Supporting National Security Through Fleet Readiness

Submarine warfare remains one of the most strategically vital areas in modern military defense. The Los Angeles-class brings decades of proven service across multi-domain conflict environments, while the Virginia-class represents a leap forward in stealth, payload capacity and adaptability. Ensuring these vessels operate without mechanical interruptions is vital to maintaining U.S. naval superiority.

Reliable repairs of key components such as valves and actuators directly impact mission success, operational safety and the service life of each submarine. This contract supports the Navy’s broader objective to reduce life cycle costs, minimize equipment downtime and preserve the availability of undersea assets on a global scale.

Advanced Repair Capabilities Enable Operational Excellence

Oceaneering’s repair methodology is built around a systemized, ISO-certified approach that includes failure mode analysis, reverse engineering and component life extension solutions. This data-driven process ensures every part is returned to operational readiness, reducing the need for full replacements and maximizing the performance yield of existing inventory.

The incorporation of modern digital tools and analytics enhances traceability, while high-fidelity quality control ensures zero-defect outcomes. Oceaneering’s advanced capabilities place it at the forefront of naval component restoration.

Future Readiness and Continuous Improvement

This IDIQ contract aligns with Oceaneering’s long-term strategic vision of providing superior component lifecycle support to the U.S. military. As naval warfare evolves, so too will the complexity and expectations placed on submarine systems. Investments in workforce training, automation and advanced materials testing continue to elevate repair effectiveness and reduce lead times.

The adaptability of Oceaneering’s facilities and engineering teams makes the organization an ideal partner for emerging technologies in undersea warfare support, including predictive maintenance systems and digital twin platforms.

Conclusion

The awarding of this $86 million IDIQ contract by NAVSUP WSS to OII affirms the latter’s essential role in maintaining the reliability and effectiveness of the U.S. Navy’s submarine fleet. Through precision repairs of valves and actuators, streamlined execution at proprietary facilities and adherence to exacting military standards, this effort directly supports the continued dominance of America’s naval power beneath the surface.

OII's Zacks Rank & Key Picks

Currently, OII holds a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Repsol REPYY, Precision Drilling PDS and Vitesse Energy, Inc. VTS, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Repsol is a global energy company known for its integrated operations spanning exploration, production, refining and marketing of oil and gas. It actively pursues innovation and sustainability initiatives to transition toward cleaner energy solutions while maintaining a strong presence in key international markets. Repsol is valued at $18.16 billion. 

Precision Drilling is a leading provider of drilling and well-servicing services to the oil and gas industry, known for its advanced technology and operational expertise. The company focuses on delivering efficient and safe drilling solutions across North America. Precision Drilling is valued at $704.73 billion.

Vitesse Energy specializes in providing fluid transfer and control products for the energy sector, offering innovative solutions to optimize performance and reliability. The company serves a diverse customer base in oil and gas, industrial and renewable energy markets. Vitesse Energy is valued at $952.98 million.  

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