BAE Wins $738M Navy Contract for Vertical Launching System Canister Production

BAE Systems has won a potential six-year, $737.7 million contract from the U.S. Navy to produce and deliver Mk 41 Vertical Launching System canisters for the U.S. government and foreign military sales customers.

The Department of Defense said Friday the firm-fixed-price contract has a two-year base term worth approximately $78.8 million contract and could run through June 2030 if all options are exercised, bringing the contract’s total value to about $738 million.

Naval Sea Systems Command received three offers for the contract, which combines purchases for the U.S., Japan and Australia through the FMS program.

The contract seeks to meet the Mk 41 VLS canister production requirements for fiscal years 2024 through FY 2028.

The company will perform work in South Dakota and Minnesota.

Mk 41 VLS is designed to fire a wide range of missiles, including the Standard Missile systems, Tomahawk and the Seasparrow. The system features redundant fire control and multimode functionality that enables simultaneous interface and missile preparation for anti-submarine warfare, anti-aircraft, naval surface fire support, strike and ballistic missile defense missions.

NAVSEA first issued a solicitation for the contract in May 2023.

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