BAE to Produce Vertical Launching System Canisters Under $954.5M Contract

Jeff Brody

BAE Systems has secured a potential $954.5M contract to produce and deliver Mk 41 Vertical Launching System canisters for the U.S. Navy and foreign military sales customers.

BAE’s land and armaments subsidiary will also upgrade and repair MK 41 VLS canisters and deliver ancillary hardware, spares and related support equipment to the Navy and governments of Japan, Denmark and South Korea under the FMS program, the Department of Defense said Thursday.

VLS canisters are used to store, ship and launch various types of missiles from Navy vessels.

Naval Sea Systems Command awarded the firm-fixed-price contract through a competitive procurement process with one offer received and obligated fiscal 2020 weapons procurement and FMS funds worth $23.9M, the contract’s base amount, at the time of award.

Work will occur in South Dakota and Minnesota through May 2021 and will run through May 2024 if all options are exercised.

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