Contract Overview
BAE Systems Land & Armaments L.P. was awarded a contract modification (N00024‑21‑C‑5393) by the U.S. Department of War valued at $167,496,594 for Mechanical Design Agent support of the MK 41 Vertical Launching System. The modification contains options that could increase the total contract value to $343,300,000.
Work Allocation and Timeline
The contract’s work is split between the U.S. Navy (76% of the effort) and the Government of Japan under the Foreign Military Sales program (24%). The base contract is scheduled for completion by July 2027, while full exercise of all options would extend work through July 2028. Work will be performed at multiple locations: Minneapolis, Minnesota (42%); Norfolk, Virginia (18%); San Diego, California (18%); Aberdeen, South Dakota (9%); Bath, Maine (6%); Pascagoula, Mississippi (6%); and Redzikowo, Poland (1%).
Financial Obligation Details
At award, the Naval Sea Systems Command will obligate $4,576,831. The funding sources are:
- Fiscal 2023 shipbuilding and conversion funds: $1,700,000
- Fiscal 2026 Defense‑wide operations and maintenance funds: $1,114,519 (these O&M funds expire at the end of the current fiscal year)
- Foreign Military Sales Japan funds: $1,107,908
- Fiscal 2026 Defense‑wide research, development, test and evaluation funds: $654,404
Contracting Authority
The contracting activity is the Naval Sea Systems Command located at the Washington Navy Yard, Washington, D.C., and the contract is structured as a cost‑plus‑fixed‑fee with a cost modification action.