Sole-source award supports PAE Strategic Systems Programs
OBBBA funds of $4.8 million are obligated
A foreign military sale benefits from the work

BAE Systems has won a $99.2 million contract to provide systems engineering and integration support to the Navy’s Portfolio Acquisition Executive Strategic Systems Programs.

The Department of War said Friday the work covers systems engineering, integration, technical information, fleet support, program management, cybersecurity and documentation. A foreign military sale benefits from the award.

What Are the Contract Terms?

The hybrid contract combines cost-plus-fixed-fee and cost-plus-incentive-fee arrangements and runs through Sept. 30, 2027.

The Navy will obligate $4.8 million at the time of award from fiscal 2025 funds provided under the One Big Beautiful Bill Act.

The award was made on a sole-source basis under 10 U.S. Code 2304(c)(1), the statutory exception permitting noncompetitive award when only one responsible source can meet the requirement.

Where Will the Work Be Performed?

Rockville, Maryland, accounts for 61 percent of the effort, with Washington, D.C., at 20 percent. The remainder covers Cape Canaveral, Florida, at 4 percent; Saint Mary’s, Georgia, at 2 percent; and 1 percent each in Silverdale, Washington; Groton, Connecticut; Frederick, Maryland; North Kingstown, Rhode Island; York, Pennsylvania; Huntsville, Alabama; and Barrow-in-Furness, United Kingdom.

How Does the Award Fit BAE Systems’ Strategic Systems Work?

Strategic Systems Programs became a portfolio acquisition executive organization under a Navy acquisition overhaul announced in August. The restructuring gave PAEs responsibility for entire capability portfolios, including technical, contracting and sustainment functions previously split across program executive offices.

BAE Systems has held systems engineering work for the office through several awards. The company booked a potential five-year, $478 million systems engineering and integration support contract in 2024 to support oversight of the Strategic Weapon System and Attack Weapons System, covering Ohio, Vanguard, Columbia and Dreadnought-class submarines.

Strategic Systems Programs awarded the company a $122 million contract in November 2024 for engineering, integration and test services supporting the Trident II Strategic Weapon System and the D5 Life Extension 2 alteration.

In September 2026, BAE Systems secured a $94.6 million contract for engineering, technical and programmatic services on the Nuclear-Armed Sea-Launched Cruise Missile effort.