DOD awards $183M Aegis Ashore, $40M Aegis BMD contracts

By John Liang / February 11, 2016 at 11:44 AM

The Defense Department this week announced a pair of Aegis missile defense contract awards.

On Feb. 10, the Army awarded Alpharetta, GA-based AMEC Programs a $183 million contract for the third phase of building the Aegis Ashore missile defense system based in Poland.

"Bids were solicited via the Internet with four received," according to an Army contract announcement, which adds: "Fiscal [years] 2015 and 2016 military construction; research, development, testing, and evaluation; and other procurement funds in the amount of $173,874,936 were obligated at the time of the award."

The contract has an estimated completion date of April 9, 2018, the statement reads.

On the same day, the Missile Defense Agency awarded Lockheed Martin's Moorestown, NJ-based Mission Systems and Training business unit a $40 million contract modification to provide "support of advanced concept initiatives by the Aegis Ballistic Missile Defense (ABMD) Program Office to identify technology for introduction into present and future ABMD baselines and upgrades."

The new modification increases the total cumulative contract value to $2.18 billion, according to MDA.

Work on the contract is expected to be completed by Oct. 27, 2019, the agency said. 

"Fiscal 2015 research, development, test and evaluation funds in the amount of $50,000 are being obligated at the time of award, and will expire at the end of the current fiscal year. Fiscal 2016 research, development, test and evaluation funds in the amount of $6,400,000 are being obligated at the time of award," the statement reads.

According to an overview of MDA's FY-17 budget request submitted to Congress this week:

MDA requests $630 million for EPAA Phase 3 in FY 2017. This includes the deployment of a second Aegis Ashore site in Poland, upgrade of the Aegis Ballistic Missile Defense (BMD) weapon system, and delivery of a new SM-3 variant, the Block IIA. Aegis Ashore construction for the Poland site is scheduled to begin in FY 2016, with a [Technical Capability Declaration] by the end of calendar year 2018. For EPAA Phase 3, Aegis Ashore sites and Aegis BMD ships will be capable of launching SM-3 Block IA, IB, and IIA variants, providing improved defensive coverage against short- through intermediate-range threats.

MDA requests $514 million in procurement for Aegis BMD, which plays a critical role in both homeland and regional defense. MDA will procure 35 Aegis SM-3 Block IB missiles in FY 2017, for a total of 247 SM-3 Block IB missiles procured by the end of FY 2017. MDA will deliver 39 SM-3 Block IB missiles to the Fleet, for a delivery total of 146 missiles.

MDA requests $73 million of Operation and Maintenance funding for the Aegis BMD program to perform missile recertification, repair eff orts, demilitarization, and Ordnance Assessment/Surveillance. This funding includes BMD Computer Program, Ship Equipment, and Aegis Ashore - Romania sustainment, as well as Fleet integration support.