The operating contract includes a 10-year base plus three five-year options, which, if fully exercised, will extend the award thru 2036. Initially, the Army has awarded approximately $850 million to the company for the first 10 years.
The Radford plant, established in 1941, is a government-owned, contractor-operated facility that manufactures propellants for military munitions. Covering more than 6,900 acres, the facility provides employment for more than 850 direct and subcontractor personnel.
“We’re excited about the opportunity to partner with the Army in maintaining this vital facility,” said David Herr, president of BAE Systems Support Solutions. “Radford provides essential products to support the men and women around the world who defend our nation.”
The plant will be operated by BAE Systems Ordnance Systems, Inc., a business unit of BAE Systems Support Solutions. Ordnance Systems is the current operating contractor for the Holston Army Ammunition Plant in Kingsport, Tennessee, under an Army contract awarded in 1998 that extends through 2023.
“We will bring to Radford innovative ideas, cost-effective solutions and demonstrated past performance,” said Jerry Hammonds, vice president and general manager of Ordnance Systems. “We will also bring a proven track record for safe, secure and efficient facility operations. With Radford, the Army should expect the same level of excellent performance that has been provided at Holston.”