The Department of Defense said Wednesday the firm-fixed-price contract also covers the procurement of MK 29 Mod 0 and Mod 1 canisters, along with the requirements for MK 41 VLS canister production.
Under the contract, the United States will purchase 52 percent of the production while the remaining 48 percent will be purchased by Japan under a foreign military sales agreement.
The initial award is valued at $22.2 million. It includes option periods that will increase the cumulative value to $317.2 million if exercised. The BAE Systems business will conduct ninety percent of the work in Aberdeen, South Dakota. The remaining work will be done in the company’s facility in Minneapolis, Minnesota. The project will run through July 2026 but may extend to July 2030, if all options are exercised.
The Naval Sea Systems Command in Washington, D.C., will allocate $11.5 million from fiscal 2024 defense-wide procurement funds and $10.7 million from Japan’s FMS funds. The initial amount will not expire at the conclusion of the current fiscal year.
The contract was awarded competitively, with three offers submitted.
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