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BAE Receives $202M Army Explosive Production Contract

Jeff Brody

BAE Systems has secured a one-year, $202.4M contract from the U.S. Army to manufacture explosives and related parts at a military ammunition factory located in Kingsport, Tenn.

The company will deliver the materials at Holston Army Ammunition Plant under the fixed-price-incentive contract, the Department of Defense said Wednesday.

Army Contracting Command solicited and received one bid for the procurement effort. DoD expects BAE to finish contract work by Sept. 30, 2020.

The Holston factory serves as a key supplier of explosive RDX and HMX compounds to the Department of Defense and supports the Armament Retooling and Manufacturing Support program.

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