The Army has awarded BAE Systems a five-year contract extension to continue operating its ammunition plant in Virginia through 2026, the company announced Tuesday.
The $1.3 billion contract covers management, production maintenance, sustainment and modernization of the Radford Army Ammunition Plant, the company said. It has operated the plant since 2012.
The contract award will fund the production of propellants, according to a July 15 Pentagon contract announcement, which the company says can be used for direct fire, indirect fire and rocket applications.
Top Army leaders and the House Armed Services Committee have expressed concerns about the munitions industrial base and its ability to meet surge capacity.
Last week, Army Under Secretary Gabe Camarillo said the munitions industrial base was a “top concern across the Department of Defense.”