BAE Systems Secures $167.5 Million Navy Contract Modification for VLS Support

BAE Systems Land & Armaments L.P. has received a $167,496,594 contract modification from the U.S. Navy to provide support for the MK 41 Vertical Launching System (VLS). The deal, which was announced by the Naval Sea Systems Command, includes options that could increase its total cumulative value to $343.3 million.

Contract Details

The modification to contract N00024-21-C-5393 covers Mechanical Design Agent support for the MK 41 VLS, a critical shipboard missile launching system used on surface combatants. The contract is a cost-plus-fixed-fee and cost modification action.

This agreement combines purchases for the U.S. Navy, which accounts for 76% of the work, with sales to the government of Japan, which constitutes the remaining 24% under the Foreign Military Sales (FMS) program. The inclusion of an FMS component highlights ongoing defense cooperation between the U.S. and key allies.

Funding and Timeline

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At the time of the award, the Naval Sea Systems Command will obligate $4,576,831 from a mix of funds, including:

• Fiscal 2023 shipbuilding and conversion funds
• Fiscal 2026 Defense-wide operations and maintenance funds
• FMS Japan funds
• Fiscal 2026 research, development, test, and evaluation funds

Work will be performed at multiple U.S. locations—including Minnesota, Virginia, and California—as well as in Redzikowo, Poland. The base contract work is expected to be completed by July 2027, with a potential extension to July 2028 if all options are exercised.