BAE Systems wins $167M Navy contract modification

BAE Systems secured a significant $167.5 million contract extension from the U.S. Department of Defense for the MK 41 Vertical Launching System Mechanical Design Agent. The modification, to contract N00024-21-C-5393, could potentially raise the overall value to $343.3 million. This contract, covering both U.S. Navy and Japanese government procurement, allocates work across various facilities.

The majority of the work will take place in Minneapolis, Minnesota, with additional sites in Norfolk, Virginia; San Diego, California; Aberdeen, South Dakota; Bath, Maine; Pascagoula, Mississippi; and Redzikowo, Poland. The base contract is set to conclude by July 2027, with further work potentially extending through July 2028. Upon award, $4.58 million in funds, sourced from fiscal year 2023 shipbuilding and conversion funds, fiscal year 2026 Defense-wide operations and maintenance funds, FMS Japan funds, and fiscal year 2026 Defense-wide research, development, test, and evaluation funds, will be obligated.

These operations and maintenance funds, amounting to $1.11 million, will lapse at the end of the current fiscal year. The Naval Sea Systems Command, located in Washington Navy Yard, D.C., oversees this cost-plus-fixed-fee and cost modification action.