The Navy ship CVN-65, known as the USS Enterprise — not to be confused with other U.S. Navy ships that have been given the Enterprise name – is set to be dismantled. Serving from 1958 to 2012, CVN-65 was the Navy’s first nuclear-powered ship and is also the first ship of its kind to be prepared for full disassembly and disposal. Of course, it hasn’t fully earned the second accolade just yet, as there’s an issue with actually getting the process underway. Thanks to an apparent computer glitch at an inopportune time, the procedure and the bureaucracy behind it have gone to the courtroom.
The issue stems from the Navy’s alleged mishandling of the dismantlement contract in April 2025. The Procurement Integrated Enterprise Environment website, where companies bid for the rights to dismantle the ship, reportedly had issues on deadline day, leading to individuals getting locked out and enduring long loading times. This allegedly caused the likes of HII Shipcycle LLC. to fail to submit their bids before the deadline. HII requested leniency due to the issues, but was denied. As a result, the Navy awarded the $537 million contract to NorthStar Marine Dismantlement Services LLC., partnered with Modern American Recycling and Radiological Services, in May.
However, in August, EnergySolutions Federal Support LLC. and HII Shipcycle filed an appeal, claiming that they were wrongfully disqualified from bidding on the contract due to the Navy website’s glitches. Come February 2026, Judge Philip S. Hadji ordered that the Navy halt the NorthStar contract and reopen the bidding. Unsurprisingly, those at NorthStar weren’t so quick to let this ruling stand.
NorthStar is pushing back against the ruling
In the wake of Judge Philip S. Hadji’s ruling, the United States Navy released a statement to AL.comexplaining that it intends to fully comply with the decision and offer interested parties a chance to resubmit their contract bids. “The Navy is re-opening the solicitation via an Amendment that allows all Offerors in the competitive range to resubmit [final proposal revisions] to inform a new source selection decision,” the statement said. It added that the Navy expects a new contract to be delivered in June 2026.
Not long after the court decision on the dismantling contract, NorthStar predictably launched an appeal. The company legally challenged the ruling in March 2026, arguing that it unjustly halts its and the Navy’s efforts to dismantle the USS Enterprise. NorthStar was planning to move the ship’s hull to Mobile, Alabama, for deconstruction — despite previous opposition from the Mobile Chamber of Commerce – though this move is currently up in the air given the state of the contract.
Several things can happen to a U.S. Navy ship once it’s decommissioned, with dismantlement being quite a time-consuming and costly endeavor. In the case of the USS Enterprise, the already lengthy timetable — the project was scheduled to wrap up in November 2029 – likely extended much further. Time will tell who will ultimately land the contract and how long it will take to see this tenured ship completely torn down.
