BAE Systems Land & Armaments L.P. has been awarded a $167,496,594 modification to an existing contract with the U.S. Department of War for mechanical design agent support related to the MK 41 Vertical Launching System, the Naval Sea Systems Command announced Friday. The change is tied to contract number N00024-21-C-5393 and carries options that, if exercised, would increase the total potential value to $343,300,000.
The contract modification consolidates purchases for both the U.S. Navy and a Foreign Military Sales customer - the government of Japan. Under the terms announced, the Navy will account for 76% of the work and Japan will account for 24%.
Work under the award will be performed at multiple sites across the United States and one location in Europe, with the following distribution by location: Minneapolis, Minnesota - 42%; Norfolk, Virginia - 18%; San Diego, California - 18%; Aberdeen, South Dakota - 9%; Bath, Maine - 6%; Pascagoula, Mississippi - 6%; and Redzikowo, Poland - 1%.
The base portion of the contract is slated for completion by July 2027. Should all contract options be exercised, performance will extend through July 2028.
At the time of award, the Naval Sea Systems Command will obligate $4,576,831 in funding. The obligated amounts are drawn from multiple fiscal accounts as follows: fiscal 2023 shipbuilding and conversion funds - $1,700,000; fiscal 2026 Defense-wide operations and maintenance funds - $1,114,519; Foreign Military Sales (FMS) Japan funds - $1,107,908; and fiscal 2026 Defense-wide research, development, test and evaluation funds - $654,404. The announcement notes that the operations and maintenance funds totaling $1,114,519 will expire at the end of the current fiscal year.
The contracting activity for this cost-plus-fixed-fee and cost modification action is the Naval Sea Systems Command, Washington Navy Yard, D.C.
Context and implications
This contract modification secures near-term engineering and design support work for BAE Systems related to an established naval missile launching platform. The award includes both domestic Navy work and Foreign Military Sales to Japan, and it ties funding streams across multiple fiscal years and budget categories.
Operational footprint
- Primary work concentration is in Minneapolis, with significant activity also planned in Norfolk and San Diego.
- Smaller pockets of work are scheduled in Aberdeen, Bath, Pascagoula, and a single location in Poland.
Contract financing
A modest portion of the total program value was obligated at award, sourced from shipbuilding, operations and maintenance, FMS Japan, and research, development, test and evaluation funds. One category of funds tied to operations and maintenance is set to expire at the fiscal year end.