Articles

AUKUS Submarine Effort Rocked by DOD Assessment

AUKUS Submarine Effort Rocked by DOD Assessment

AUKUS, the blockbuster, multi-billion dollar security cooperation effort by the U.S., United Kingdom and Australia, is meant to share advanced submarine technology amongst allies. But an announcement by the Department of Defense that it is reviewing the effort has sent shockwaves through the program.

The DOD is reviewing the pact to evaluate if it fits with the agenda of President Donald Trump in his second term, the BBC reported. A high-ranking DOD official suggested to be skeptical of AUKUS—Under Secretary of Defense for Policy Elbridge Colby—will lead the review.

“As [Defense] Secretary [and Wash100 Award Winner Pete] Hegseth has made clear, this means ensuring the highest readiness of our servicemembers [and] that allies step up to fully do their part for collective defense,” a DOD official told the BBC.

Learn more about the future of AUKUS at the Potomac Officers Club’s 2025 Navy Summit on August 26! Discover potential partnership opportunities during a keynote by Vice Adm. Brad Skillman, deputy chief of naval operations for integration of capabilities and resources, N8. View the latest offerings from leading GovCon firms including SAIC. Strike up new relationships with other GovCon titans. Sign up today for this elite GovCon event on critical naval technologies!

What Is AUKUS?

AUKUS, inked in 2021, is a trilateral technology transfer and submarine development effort designed to bolster Western allies in southeast Asia. Valued at $239 billion, the program is designed to provide Australia with cutting-edge technology so it can build new advanced Virginia-class (SSN-774) submarines. The subs will be developed in Australia and the U.K. to British specifications, but will use technologies from all three nations.

The deal also permits Australia to purchase three used Virginia-class submarines from the U.S. at a to-be-determined date in the 2030s with a choice to buy two more. After that, AUKUS allows the U.K. and Australian navies to build their own new nuclear-powered submarines. A Virginia-class submarine has a reported unit price of $4.5 billion, according to the Congressional Research Service.

These seacraft will be able to operate faster and further than Australia’s current fleet of diesel-engine subs. They will also allow Australia to perform long-range attacks against enemies.

Allies’ Responses to DOD Review

Stakeholders from Australia and the U.K. have downplayed the review since it was announced. Penny Wong, Australian foreign affairs minister, said she understood and respected the review as “President Trump has made very clear to the world that he envisages a different role for America,” according to Sky News Australia.

An executive for a U.K. defense contractor slated to participate in AUKUS said it wasn’t out of the ordinary for a new administration to review such a massive program. David Lockwood, Babcock chief executive officer, called the review “natural” and said that he had not heard anything from U.S. partners that would be described as worrying, according to the Wall Street Journal. Babcock provides naval engineering support and other services to defense and civil customers.

How Does the U.S. Benefit From AUKUS?

Five powerful U.S. lawmakers threw their support behind AUKUS in light of the review, citing a rebounding of the submarine industrial base, reduced regulations on sharing technological capabilities and better security cooperation. In a letter to Hegseth, House Armed Services Committee Chairman Mike Rogers, HASC Ranking Member Adam Smith, HASC seapower and projection forces subcommittee Chairman Trent Kelly and Ranking Member Joe Courtney, and former House Foreign Affairs Committee chairman Michael McCaul said the AUKUS defense alliance is overwhelmingly in the best interest of all three nations as well as the entire Indo-Pacific region.

The Potomac Officers Club’s 2025 Navy Summit on August 26 is the premier GovCon conference for naval technology professionals. Attend an illuminating panel discussion on opportunities and challenges in delivering unmanned vehicles to the Navy. Get the scoop on emerging technology business opportunities from NavalX Director Capt. Joel Uzarski. All in a supportive, collaborative environment. Get your ticket today and prepare your GovCon business for success in FY 2026.

Potomac Officers Club Logo
Become a Potomac Officer Club Insider
Sign up for our weekly email & get exclusive event, and speaker updates, and find networking opportunities to connect with GovCon decision makers.

Category: Articles