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Tag: BAE Systems

BAE Systems wins up to $238M Navy ship repair contract

Falls Church-based federal contractor BAE Systems Inc. has won a Navy contract worth up to $238.8 million to maintain, modernize and repair a San Antonio-class amphibious transport dock ship.

The Department of Defense announced the $212 million firm-fixed-price contract award, which has options that would bring its cumulative value to $238.8 million, to the U.S. arm of British defense giant BAE Systems on Nov. 25.

BAE Systems Inc.’s San Diego Ship Repair unit will work on the USS Green Bay (LPD 20) in San Diego, and work is expected to be completed by October 2026.

The USS Green Bay was commissioned in 2009 and is the second Navy ship to be named for Green Bay, Wisconsin.

BAE Systems has about 41,000 employees worldwide and reported $13.6 billion in 2023 revenue. In addition to its California shipyard, the company has one in Norfolk and one in Florida. Its Norfolk shipyard team received two Navy contracts in mid-October worth a combined $202 million for the maintenance, modernization and repair of two vessels.

BAE Systems lands $202M in Navy ship repair contracts

Falls Church-based BAE Systems Inc.’s Norfolk Ship Repair unit has received two U.S. Navy contracts worth a combined $202 million for maintenance, modernization and repair of two vessels.

The U.S. arm of British defense giant BAE Systems announced the awards Monday. Its shipyard employees and their subcontractors will begin working on the guided missile destroyer USS Laboon (DDG 58) and the amphibious assault ship USS Wasp (LHD 1) in February and March 2025, respectively.

“The award of these two contracts will provide extensive work for our Norfolk shipyard team,” David M. Thomas Jr., vice president and general manager of BAE Systems Norfolk Ship Repair, said in a statement. “We look forward to using our proven experience on recent LHD and DDG work to return these ships to the fleet in excellent condition.”

According to the Department of Defense’s mid-October announcement of the awards, the Norfolk Ship Repair unit received a $114.8 million firm-fixed-price contract for work on the USS Laboon, commissioned in 1995. The contract also includes options that, if exercised, would bring its total value to $117.9 million.

BAE Systems will dry-dock the ship to perform underwater hull maintenance and repair the ship’s main propulsion system, preserve internal ballast and fuel tanks and the external superstructure, and rehabilitate crew berthing and dining compartments.

The $87.58 million firm-fixed-price contract for work on the USS Wasp includes options that, if exercised, would bring its total value to more than $104.69 million. The current USS Wasp is the 10th ship to carry the name and was commissioned in 1989. Work on both ships is expected to be completed by February 2026.

On the Wasp, BAE Systems will perform mechanical work, inspect and repair interior hull structures and refurbish habitability spaces for the crew and Marine troops. The company’s shipyard previously worked aboard the Wasp from February 2021 to April 2023.

The contractor’s Norfolk shipyard has about 900 employees.

Earlier this year, the Norfolk team began working aboard the dock landing ship USS Carter Hall, and the shipyard is currently finishing repair periods aboard USS Kearsarge, a Wasp-class ship, and destroyer USS Nitze.

BAE Systems has about 41,000 employees worldwide and reported $13.6 billion in 2023 revenue. In addition to its Norfolk shipyard, the company has one each in Florida and California.

BAE Systems receives $493M Army contract

Falls Church-based BAE Systems Inc. has received a $493 million U.S. Army contract to produce M109A7 self-propelled howitzers and M992A3 ammunition carriers, the U.S. arm of British defense giant BAE Systems plc announced Aug. 2.

The contract’s production and deliveries are scheduled between August 2025 and July 2026.

The M109A7 will be used by the Army’s Armored Brigade Combat Team, the Army’s primary armored force.

BAE Systems Inc. received the initial contract from the U.S. Army for $413.7 million to produced 48 vehicle sets  in 2017. By 2022, the federal contractor reported having produced 310 sets of M109A7 self-propelled howitzers and companion M992A3 ammunition carriers to the U.S. Army for $1.9 billion. Friday’s update brings the total contract value to almost $3 billion, according to a BAE Systems news release.

“We are focused on producing and fielding modern artillery capabilities that provide the Army with overmatch in range, accuracy and lethality,” said Dan Furber, director of ground vehicle production for BAE Systems’ Combat Mission Systems business, stated in the news release. “This contract ensures the ABCT will sustain operations of one of the most survivable indirect fire support systems for years to come.”

BAE Systems recently expanded production and support efforts for M109A7 and M992A3 at a facility in Anniston, Alabama. Facilities in Pennsylvania, Minnesota, Michigan, New York; Elgin, Oklahoma and South Carolina will also participate in production, according to a news release. 

Guidehouse lands $12B ICBM support contract

McLean-based consultancy Guidehouse has won a contract valued up to $12 billion for systems engineering supporting the Air Force’s intercontinental ballistic missiles fleet, although the initial contract awardee has filed a protest.

The single-award contract, announced Feb. 28 by the Defense Department and April 15 by Guidehouse, is the Integration Support Contract 2.0. Guidehouse was one of five companies competing for the contract, according to the Pentagon. The original contract holder, a subsidiary of Falls Church-based BAE Systems Inc., has filed a protest.

Under the 18-year contract, Guidehouse will support the current generation of land-based ICBMs — the Minuteman III — and its replacement, the Sentinel. The transition of 400 combat-capable nuclear missiles and support infrastructure will take nearly a decade, according to a news release.

“The new Sentinel must be acquired in a manner that allows the Air Force to own the technical baseline with full transparency and data rights, as well as control costs and schedule in a single-source environment,” Charles Beard, Guidehouse’s chief operating officer, said in a statement.

The contractor will provide a range of systems engineering and integration services and professional services, including administration, business analysis, cybersecurity, digital engineering, finance, mission effectiveness, program management, risk management and other services.

“These deterrent assets are at the vanguard of our nation’s defense, as well as that of NATO and other allies around the world,” Guidehouse CEO Scott McIntyre said in a statement. “We are proud of the Air Force’s selection of Guidehouse to be its partner in such a vital mission.”

Work will be performed at Hill Air Force Base, Utah, and other locations and is expected to be completed by Aug. 27, 2042. Guidehouse expects to begin its staffing on the contract with nearly 1,000 full-time employees on-site at the Air Force base and at the company’s new office in Clearfield, Utah, according to a news release.

Rockville, Maryland-based BAE Systems Technology Solutions & Services, a subsidiary of Falls Church–based BAE Systems Inc., won the original Integration Support Contract in 2013 and then won the recompete (ISC 2.0) in 2022. But, Guidehouse and Tennessee-based Jacobs Technology protested the award, and the Government Accountability Office recommended that the Air Force reevaluate proposals and “perform a new best-value tradeoff.” In March, BAE Systems filed a protest with the GAO of the award to Guidehouse.

Guidehouse employs more than 16,000 people across 55 locations around the globe. In 2022, the company opened its new McLean headquarters, moving from a previous location near the White House in Washington, D.C. In December 2023, Bain Capital Private Equity closed its acquisition of Guidehouse.

Artists pull out of SXSW over Army, RTX involvement

Dozens of bands and solo musicians boycotted Austin, Texas’ South by Southwest (SXSW) festival this week in protest against the Department of Defense’s support of Israel’s war in Gaza. Among SXSW’s sponsors this year are the U.S. Army and Arlington County-based aerospace and defense contractor RTX, which makes weapons and other equipment used by Israel’s military.

According to The Hill, as of Wednesday, 105 music acts and five music labels have dropped out of the nine-day festival, which concludes Saturday. In February, the Austin For Palestine Coalition called for music artists and participants in speakers’ panels to boycott SXSW due to the festival’s financial backing by the U.S. Army, RTX and its subsidiaries, and other defense contractors. Also mentioned by the coalition was Falls Church-based BAE Systems Inc., which was scheduled as an exhibitor at a startup event connected to SXSW, although a BAE spokesperson sent a statement to The Hill that it did not plan to participate in the festival.

Army spokesperson Lt. Col. Lindsey Elder said in a statement to Virginia Business on Thursday that the military branch is “proud to be a sponsor of SXSW, and to have the opportunity to showcase America’s Army. SXSW presents a unique opportunity for the Army to meet technology innovators and leaders, explore new ideas and insights, and create dynamic industry partnerships as we modernize for the future. By engaging with innovators and entrepreneurs, we are able to invest strategically in state-of-the-art systems, allowing us to evolve and adapt to new threats and challenges.”

Previously known as Raytheon Technologies, RTX has three business units: Aerospace and defense technology supplier Collins Aerospace, headquartered in Charlotte, North Carolina; aerospace manufacturer Pratt & Whitney, headquartered in East Hartford, Connecticut; and Arlington-based subsidiary Raytheon, which includes intelligence, space, missiles and defense business segments.

The Austin for Palestine Coalition issued an open letter Feb. 21 demanding that SXSW organizers “disinvite Raytheon (RTX), its subsidiary Collins Aerospace, and BAE Systems to the conference and festivals in the city of Austin. Raytheon, Collins Aerospace and BAE Systems have direct ties to the arming of Israel, supporting their violent oppression of the Palestinian people. Raytheon manufactures missiles, bombs and other weapon systems for the Israeli military to use against Palestinians.”

SXSW organizers said in posts on X this week that “we fully respect the decision these artists made to exercise their right to free speech,” while adding, “The Army’s sponsorship is part of our commitment to bring forward ideas that shape our world. In regard to Collins Aerospace, they participated this year as a sponsor of two SXSW Pitch categories, giving entrepreneurs visibility and funding for potentially game-changing work.”

RTX and BAE Systems did not respond immediately to requests for comment Thursday from Virginia Business.

As of late February, Israel’s war in Gaza has claimed more than 30,000 Palestinian lives, including numerous civilians, and more than 70,000 people have been wounded in the territory, according to health officials in the Gaza Strip. The war in Gaza followed Hamas’ attack on Israeli civilians near Gaza’s border on Oct. 7, 2023, which claimed about 1,200 lives, as well as the kidnapping of about 200 people, according to Israel authorities.

Also, the United Nations and worldwide aid organizations have characterized the situation in Gaza as a humanitarian catastrophe, as Israeli troops have frequently not allowed food and other aid to reach people in the territory. Last month, top U.N. officials said that at least a quarter of Gaza’s population, or 576,000 people, are “one step away from famine” without more aid, according to the Associated Press.

President Joe Biden and other U.S. politicians have received heavy criticism for their support of Israel’s military as the death toll grows in Gaza, and the federal government has increased financial and military aid to Israel in a budget passed by the U.S. Senate and now under consideration in the U.S. House of Representatives.

In Biden’s State of the Union speech, he called for a ceasefire in Gaza and authorized the construction of a temporary port to allow delivery of humanitarian aid to Gaza residents, while still funding weapons for Israel. Also, Senate Majority Leader Charles Schumer, a leading U.S. Democratic ally of Israel, said in a speech Thursday that Israel needs to hold a new election and that the Middle East nation risks becoming a “pariah” under Prime Minister Benjamin Netanyahu, who has authorized Israel’s military campaign in Gaza.

BAE Systems closes $5.6B acquisition of Ball Aerospace

Falls Church-based BAE Systems Inc., the U.S. arm of the British defense giant BAE Systems, has completed its $5.6 billion acquisition of Colorado-based Ball Aerospace from Ball Corp.

BAE Systems announced Feb. 14 it earned the necessary regulatory approvals and followed that with a Feb. 16 announcement of the deal’s completion. The company first announced the transaction, which it is funding through existing cash and new external debt, in August 2023.

BAE Systems will form a new business division, Space and Mission Systems, following the acquisition, and 5,200 U.S. employees from Ball Aerospace will join the company.

Ball Corp., the former owner of Ball Aerospace, supplies aluminum packaging for beverage and household product customers. Ball Aerospace supplies spacecraft, mission payloads and optical and antenna systems and works with the intelligence community, the Department of Defense, civilian space agencies and on aerospace and defense contracts.

“In recent years, we’ve said that we would seek out opportunities to grow our portfolio in advanced technology areas that meet our customers’ most urgent needs, and completing the acquisition of Ball Aerospace is an example of that strategy in action,” BAE Systems CEO Charles Woodburn said in a statement. “We look forward to welcoming the employees of Ball Aerospace to BAE Systems, bringing one of industry’s most respected and capable businesses into the group. The addition of this quality, fast-growing technology-focused business will significantly expand our presence in this increasingly critical space domain and further enhances our value compounding model of top-line growth, margin expansion and high cash generation.”

BAE Systems reported $12.6 billion in revenue in 2022 and has 31,300 employees in the U.S., including more than 5,100 in Virginia.

BAE Systems receives $245.6M Army contract

Falls Church-based BAE Systems will procure early-order material to support the future purchase of the Army’s Armored Multi-Purpose Vehicles (AMPV) under a $245.6 million cost-sharing contract announced by the Pentagon Friday.

Work will be performed by BAE Systems’ land and armaments sector in York, Pennsylvania, with an estimated completion date of Dec. 31, 2024. There was only one bid received for the work.

The AMPV is the Army’s program to replace the service’s Vietnam War-era M113 armored personnel carriers. The vehicles weigh between 75,000 to 80,000 pounds and reach speeds of up to 38 mph. The Army and BAE are working to accelerate production of the vehicles because about 200 M113s have been supplied to Ukraine, according to a January 2023 report by the Congressional Research Service.

BAE Systems Inc. is a subsidiary of England-based BAE Systems plc.

 

BAE Systems receives $145M ship repair contract

BAE Systems’ Norfolk Ship Repair will repair, modernize and maintain the guided missile destroyer USS Nitze under a $145 million contract, the Pentagon announced Friday.

Work will be performed in Norfolk and is part of the Arleigh Burke-class destroyer’s scheduled depot modernization. The contract includes options that would bring its value up to $161 million if exercised. Work is expected to be completed by October 2024.

Nitze is homeported at Naval Station Norfolk and deployed in July 2022, according to the Navy. It is part of the George H. W. Bush Carrier Strike Group. Nitze arrived at Turkey’s Gölcük Naval Base on Feb. 3 for a scheduled port visit, three days before a 7.8 magnitude earthquake devastated the country’s southern border with Syria, killing more than 47,000 people. Two days after the quake, the Pentagon said it was positioning the USS George H. W. Bush as well as several of its assets in the Mediterranean Sea should Turkey request relief aid.

Falls Church-based BAE Systems Inc. is a subsidiary of England-based BAE Systems plc. For the second year in a row, Signal Mutual, a provider of longshore worker compensation benefits, recognized BAE Systems’ U.S. ship repair business as a top safety company for 2022, BAE announced earlier this month. BAE Systems employs 3,000 workers in its three shipyards in Virginia, California and Florida and the company was one of five to receive the recognition.

Radford Army plant contract extended through 2026

While the contract extension for operation of the sprawling Radford Army Ammunition Plant is reassuring from an economic development perspective, it also has sentimental value to the community.

“The Radford Army Ammunition Plant means a lot to our BAE Systems workforce, but also to the generations of families in our community that have kept the site running since World War II,” says Brian Gathright, vice president and general manager of BAE Systems Ordnance Systems Inc., the federal contractor that operates the plant. It’s a division of Falls Church-based BAE Systems.

BAE’s contract to manufacture military propellants and explosives for the U.S. Department of Defense now extends through 2026 with a ceiling of $1.3 billion.

The U.S. Army announced the extension in July, ensuring continuity at one of the largest employers in the New River Valley. BAE began operating the arsenal in 2012 and oversees about 3,000 employees and subcontractors. The main industrial site sits along the New River in Montgomery and Pulaski counties between the cities of Radford and Blacksburg. A second storage site is about
12 miles away, near Dublin.

“BAE Systems’ dedication, focus and pride remain just the same as the first day we stepped on site to operate the Radford Army Ammunition Plant over 10 years ago,” Gathright says.

That dedication means a lot to the New River Valley.

“The Radford Army Ammunition Plant … is a significant employer in Montgomery County and the New River Valley,” says Brian Hamilton, Montgomery County’s director of economic development. “Radford Army Ammunition Plant employees receive higher than average manufacturing wages, which has a substantial economic impact on the region.”

In a report by the Virginia Employment Commission, BAE ranked seventh among largest employers in the New River Valley behind powerhouses such as Virginia Tech, Volvo Group North America Inc., Radford University and Carilion New River Valley Medical Center.

“Historically, the ammunition plant has been instrumental in developing and establishing neighborhoods and infrastructures here in Radford dating back to the 1950s,” says Kimberly D. Repass, the city’s director of economic development.

Opened in 1941, the Radford plant is one of a handful of government-owned ammunition suppliers still operating. Work on a new nitrocellulose manufacturing facility at the plant began last year, an effort the Army said will transform the Radford site “from a World War II-era plant to a 21st-century installation.” 

BAE Systems lands $176M Air Force contract

Falls Church-based BAE Systems Inc. has won a $176 million contract to provide software-defined radios to the Air Force.

The defense contractor said in a news release Thursday that the radios, which will support the Air Force’s Airborne High Frequency Radio Modernization program, will provide a secure alternative to satellite communications. The contract is for five years, said BAE Systems spokesperson Shelby Cohen.

BAE will provide long-range communications while jamming threats using a drop-in compatible radio design using commercial off-the-shelf technology from Austin, Texas-based FlexRadio. Development will take place at a BAE Systems facility in Fort Wayne, Indiana.

“Our airborne radios are scalable and designed for open architecture applications, making them a solution that’s ready for the Air Force’s future needs,” said Dave Logan, vice president and general manager of C4ISR solutions at BAE Systems. “The evolving capabilities of threats in the modern battlefield call for an extensible, modernized anti-jam solution, which our product provides.”

BAE Systems has more than 89,600 employees in more than 40 countries.