By SUZANNE DOWNING
June 29, 2026 – The Ketchikan Shipyard has landed another major federal contract, signaling that Alaska’s maritime industry is gaining momentum as a growing center for vessel repair and modernization.
JAG Ketchikan LLC has been awarded a $99.6 million contract from the National Oceanic and Atmospheric Administration to perform the modernization and midlife extension of the NOAA research vessel Henry B. Bigelow. The contract, which began June 10, runs through April 14, 2029, and provides nearly three years of steady work at the AIDEA-owned shipyard.
The award represents another significant milestone for JAG Marine Group, which took over operations of the Ketchikan Shipyard and has rapidly expanded both its workforce and federal project portfolio. Company President Doug Huff described the award as “another $90-plus million of backlog for Ketchikan.”
The project is expected to continue transforming what was once an underutilized state-owned asset into one of Alaska’s premier industrial facilities. Employment at the shipyard has grown from roughly 15 workers when JAG assumed operations to about 150 today, with additional hiring expected as work ramps up.
Unlike the seasonal maintenance schedule for the Alaska Marine Highway System fleet, the NOAA modernization project provides stable, year-round work that requires highly skilled welders, electricians, mechanics, engineers and fabrication specialists.
The contract builds on momentum that has been developing over the past year. During a recent visit to Ketchikan, AIDEA’s board reviewed expansion plans for the shipyard and discussed its long-term potential as a cornerstone of Alaska’s maritime economy. The Alaska Story also recently reported on a new workforce training partnership designed to prepare Alaskans for careers at the growing shipyard through hands-on vocational education.
Gov. Mike Dunleavy called the award “a clear win for Alaska.”
“It means more jobs, more skilled trades, and more steady work at the Ketchikan Shipyard,” Dunleavy said. “We’ve said all along that Alaska needs to leverage its infrastructure and workforce to compete for large federal projects, and this award shows that strategy is working.”
Sen. Dan Sullivan emphasized both the economic and national security value of expanding Alaska’s maritime industrial capacity.
“Alaska’s growing maritime manufacturing base is both a major economic asset and a national security imperative,” Sullivan said. “Projects like this create good-paying jobs for Alaskans and reinforce Alaska’s position as a strategic hub for maritime operations in the Pacific and the Arctic.”
Congressman Nick Begich said the nearly $100 million investment demonstrates that Alaska can successfully compete for major federal shipyard work.
“Every contract secured by the Ketchikan Shipyard brings new investment into our state, supports skilled jobs, expands industrial capability, and strengthens our position as a strategic hub for vessel modernization, repair, and fabrication,” Begich said.
Huff said the company is honored to support NOAA’s mission while expanding economic opportunities in Southeast Alaska.
“NOAA plays an important and significant role in maritime commerce, port safety, nautical charting, research, and fishing and resource management,” Huff said. “The investment being made in the NOAA vessels will allow them to fulfill their responsibilities well into the future.”
He also credited AIDEA and Executive Director Randy Ruaro for helping expand maritime capabilities in Alaska and thanked employees and industry partners who helped position JAG to win the competitive federal contract.
State Sen. Bert Stedman said the continued partnership between AIDEA and JAG is helping secure the future of the Ketchikan Shipyard and creating long-term opportunities for Southeast Alaska.
Ketchikan Mayor Bob Sivertsen called the contract welcome news for the community, saying it will create more family-supporting jobs while encouraging young people to pursue careers in the skilled trades.
Charles Edwardson, director of the Prince of Wales Campus and Generations Southeast vocational training center, said projects of this size strengthen the connection between classroom instruction and careers in welding, electrical work, fabrication and other maritime trades. His organization has partnered with JAG to develop training tailored specifically to the shipyard’s workforce needs.
Department of Commerce, Community, and Economic Development Commissioner Julie Sande, a Ketchikan resident, said the improvements are easy to see.
“What had been an underutilized and underperforming state asset is now showing visible momentum,” Sande said. “The shipyard is not only Ketchikan’s shipyard; it is an asset for the entire state of Alaska.”
The award also advances a broader vision shared by state leaders and AIDEA officials: transforming Alaska into a national maritime hub much as Ted Stevens Anchorage International Airport became a global cargo aviation center.
With growing federal, commercial and Arctic demand for ship repair, fabrication and modernization, supporters say Alaska’s geographic location and industrial infrastructure position it to capture more of that work. Continued investment in facilities such as the Ketchikan Shipyard could diversify Alaska’s economy while creating stable, high-paying skilled jobs for decades to come.
For AIDEA, which acquired the shipyard to preserve and expand Alaska’s maritime industrial base, the nearly $100 million NOAA contract is another sign that the strategy is beginning to pay dividends.
