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Serco Awarded $49.5 Million U.S. Navy Contract to Modernize Submarine Communication Systems

Published: 17 Sep 2025

Serco Inc., a provider of professional, technology, engineering, and management services, has been awarded a re-compete contract to support the U.S. Navy's submarine fleet. The contract, awarded by the Naval Undersea Warfare Center (NUWC) Newport, has a total value of $49.5 million over a five-year period.

Under the contract, Serco will continue to manufacture and repair Radio Frequency Distribution and Control Systems (RFDACS), which are critical components for submarine operations. This work sustains secure and reliable communication submarine radio rooms. The Navy's ongoing modernization efforts for this system involve manufacturing new units, upgrading existing ones, and managing component obsolescence to ensure mission readiness. Work will be performed at Serco's facility in Ludlow, Massachusetts.

"We are honored to continue our partnership with NUWC Newport and support the mission of the U.S. submarine fleet," said Tom Watson, CEO of Serco Inc. "This award demonstrates the quality of work our team has delivered since 2020. The expansion into engineering and modernization services allows us to provide even greater value and ensures these critical systems are sustained for the future."

Serco first won the RFDACS contract in 2020. This follow-on contract significantly expands Serco's role by adding engineering services for the development, upgrades, and modernization of the RFDACS equipment. Serco will provide comprehensive support, from production to sustainment, enhancing its capabilities to support equipment inside the submarine radio room. This expansion aligns with Serco’s core expertise in modernization that it has provided on other contracts for over 20 years.