NUWC Division Newport: $2 Billion Impact on Economy in 2024

The total funded program of the Naval Undersea Warfare Center (NUWC) Division Newport reached $2 billion in 2024, according to the recently released economic impact report.

Of its total operating budget, $776 million was spent by Division Newport in civilian payroll and labor, materials, operational expenditures, property maintenance and repair, and military payroll, while $1.2 billion funded contracts.

One of two divisions of the Naval Undersea Warfare Center, Division Newport has a workforce comprised of 51% government civilian employees, 48% support contractor employees and 0.38% military staff. These employees reside in Rhode Island (68%), Massachusetts (23%), Connecticut (4%) and other areas of the United States (5%).

Of the full-time government civilian staff, 73% are classified as scientists or engineers, with 86% of the workforce holding a four-year degree and 36% holding an advanced degree. The average government civilian salary is $122,000, according to the report.

Of the approximately $1.2 billion spent on contracts, small business obligations accounted for about $356 million. Roughly 95% of Division Newport's contract obligations paid for new services in Rhode Island, and 94% percent of fiscal year 2024 contracts were competitively awarded. The fiscal year ran from Oct. 1, 2023, to Sept. 30, 2024.

Academic and intellectual outreach in 2024 included 12 science, technology, engineering and math (STEM) programs and 31 educational partnerships that totaled $1.24 million in funding and reached 16,484 students in pre-kindergarten through grade 12. Division Newport had 89 active cooperative research and development agreements (CRADAs), 74 collaborative projects with academia and employees published 176 technical papers. Between fiscal years 2020 and 2024, Division Newport employees have generated 162 patented inventions.

Division Newport operates under the Navy Working Capital Fund (NWCF) model, which means it receives funds from multiple “customers” to execute tasking within its assigned mission. Those utilizing the NWCF model receive no directly appropriated funding and operate like a nonprofit business with a “customer-provider” relationship. Division Newport’s incoming funds for fiscal year 2024 totaled $2.0 billion.

The Navy and Marine Corps represented Division Newport’s largest customer with $982 million in funding. The next largest were private parties at $23 million, other Department of Defense outfits at $14 million, and the Air Force with $10 million. Incoming funds from the Army and other government organizations represented approximately $3 million.