BAE Systems has won a potential $400 million contract to manufacture canisters for the U.S. Navy to store, transport and launch missiles.
The Navy initially awarded $40 million to BAE and the contract will reach its full value if all options are exercised, BAE said Tuesday.
Chris Hughes, BAE vice president and general manager of weapon systems, said the company builds missile canisters to help naval forces carry out combat missions.
BAE will produce four canister types for the Tomahawk, Standard Missile-3, Standard Missile-6 and Evolved SeaSparrow Missile.
The Navy BAE canisters for the Mk 41 and Mk 57 vertical launching systems that work to support anti-submarine, land attack, anti-air and ballistic missile defense operations.
Work will occur at the company’s facility in Aberdeen, S.D. through 2019.