Navy awards $536M contract to industry for first dismantlement of nuclear-powered ship

The former USS Enterprise (CVN-65) sits in port at Newport News Shipbuilding awaiting final inactivation. (Justin Katz/Breaking Defense)

WASHINGTON — The Navy awarded a $536 million contract to NorthStar Maritime Dismantlement Service to dismantle, recycle and dispose of the former aircraft carrier Enterprise (CVN-65), a four-year undertaking that will set precedents for future nuclear-powered ship disposals.

“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,” according to a May 30 contract announcement.

The contract to NorthStar will set precedents for future ship disposals because the former Enterprise is the first nuclear-powered aircraft of which the Navy must dispose. Additionally, the choice to proceed with the disposal through a commercial contractor is uniquely different from how the service disposes of nuclear-powered submarines, which are handled by a combination of the public shipyards and Department of Energy facilities.

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NorthStar, whose parent company is based in New York, previously announced a teaming arrangement with Modern American Recycling and Radiological Services, which has facilities in Mobile, Ala., where the work will be completed.

Scott State, CEO of NorthStar Maritime Dismantlement Services, said in a statement his company will dismantle the ship “safely, efficiently, cost-effectively and in an environmentally responsible manner.”

“The Navy’s decision recognizes that the NorthStar/M.A.R.R.S. team possesses the right combination of decades-long experience in nuclear decommissioning and maritime recycling needed for the ex-Enterprise project,” he said. “We stand ready to replicate the exceptional safety and environmental stewardship record we have attained through successful work on other complex nuclear decommissioning and maritime recycling projects.”

In a Monday statement published on LinkedIn, Naval Sea Systems Command, the Navy agency issuing the contract, said, “By leveraging private-sector expertise in commercial nuclear power plant decommissioning, the Navy is achieving an estimated $1 billion in cost savings compared to conducting the effort in public shipyards. This approach enables the Navy to prioritize public yard resources toward fleet readiness and modernization — while upholding its longstanding commitment to environmental stewardship and nuclear safety.”

The work is expected to be completed by November 2029.