The Naval Sea Systems Command (NAVSEA) awarded the Applied Research Laboratory at Pennsylvania State University (ARL/PSU) a $1 billion contract for research, development, engineering and test and evaluation for programs throughout the Defense Department, focused on maritime issues.

This indefinite-delivery/indefinite-quantity (IDIQ) contract focuses on research and development in core competency areas ARL/PSU has already been approved for. This includes guidance, navigation and control of undersea systems, undersea vehicle advanced thermal propulsion concepts and systems, advanced propulsors and other fluid machinery for marine systems; materials technology and manufacturing technology to meet the unique requirements of naval systems, and atmosphere and defense communications systems research to support and complement maintained capabilities.

ARL-PSU Penn State Navy research lab

The R&D work also covers mission-related and public service-oriented research, technology development, test, evaluation and systems analysis needed to provide quick responses to quickly evolving DoD and other agency requirements.

AFL/PSU is a Defense Department University Affiliated Research Center (UARC) laboratory first established in 1945 and has a long-term strategic relationship with the Pentagon.

The contract includes an option that, if exercised, would raise the total ceiling value to $2.1 billion.

Work is expected to be finished by February 2028. NAVSEA said the contract was not competitively procured, in accordance with U.S. Code for developmental or research capability.