BAE Systems Wins $167 Million MK 41 Launch System Contract

BAE Systems Land & Armaments L.P. received a $167,496,594 contract modification from the United States Department of War to provide Mechanical Design Agent support for the MK 41 Vertical Launching System. Announced by the Naval Sea Systems Command on August 29, 2026, the agreement includes options that could raise the total value to $343,300,000.

The project is a joint effort between the U.S. Navy, which funds 76% of the work, and the Government of Japan, which provides the remaining 24% through the Foreign Military Sales program. Funding for the modification is drawn from shipbuilding, conversion, and research funds from fiscal years 2023 and 2026.

The base contract is scheduled for completion by July 2027. If all available options are exercised, the support period will extend through July 2028.