BAE Systems Secures $38.2 Million Navy Contract Modification for Gun System Overhauls

BAE Systems Land & Armaments L.P. has been awarded a $38.2 million modification to an existing U.S. Navy contract for the overhaul of two key naval weapon systems. The award, announced by the Department of Defense, covers maintenance work on the widely used MK 45 naval gun.

Contract Details

The cost-plus-incentive-fee modification is valued at precisely $38,199,786. The scope of the work involves overhauling two MK 45 Mod 4 systems, which are 5-inch guns that serve as the primary anti-surface and naval gunfire support weapon on many U.S. Navy destroyers and cruisers.

Work on the contract will be performed in Louisville, Kentucky, and is scheduled for completion by March 2030. The award modifies a previously issued contract, N00024-24-F-5322, from the U.S. Navy.

Funding and Administration

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The contract is being financed with the Navy's fiscal 2024 shipbuilding and conversion funds. According to the Pentagon's announcement, the full amount of the award will be obligated at the time of the contract modification.

These funds will not expire at the end of the current fiscal year, a standard procedure for long-term defense procurement and sustainment projects. The Naval Sea Systems Command in Washington, D.C., is the contracting authority for this award.

Significance for BAE Systems

While modest in size for a major defense contractor like BAE Systems, this award highlights the importance of maintenance, repair, and overhaul (MRO) contracts. Such agreements provide a stable and predictable revenue stream, complementing larger, more intermittent contracts for new platform development and production.