BAE Systems has won a contract to manufacture different types of vertical launching system (VLS) canisters for the US Navy.
The five-year contract has a total ceiling value of $955m.
In February this year, the initial contract was awarded and $24m was funded.
Contract modifications valued at $99m and $43m respectively were made in March and May.
The contract comes with options for additional canister types for the future production needs of the navy.
Designed to offer identification and firing support to a range of missiles, VLS canisters can be used as containers for shipping, storage, and as launch tubes for missiles.
Some of the missile types supported by VLS canisters are Tomahawk Land Attack Missile, Standard Missile-2, Standard Missile-3, Standard Missile-6, and the Evolved SeaSparrow Missile.
BAE Systems Weapon Systems product line vice-president and general manager Brent Butcher said: “These canisters are a key element of the navy’s VLS, and our experience includes 30 years of VLS production, integration and testing to support this world-class capability.
“The navy will continue to benefit from our high-quality canisters and lean, efficient operations, which translate into the best possible value for our customers.”
BAE Systems will deliver canisters for the US fleet and its allied nations under a Foreign Military Sales programme.
Deliveries for the initial order are expected to take place next year. However, if all options are exercised, the deliverables are expected to happen in 2025.
BAE Systems will perform the contract work at its production facility in Aberdeen, South Dakota. Engineering and programme support work will be carried out in Minneapolis.
In April 2015, the US Navy awarded BAE Systems a contract modification to provide additional canisters for the Mk 41 VLS.