BAE Systems Wins Up to $90 Million Navy MK 295 HE-3P Cartridge Contract

BAE Systems Land & Armaments has received a Navy contract worth up to $90 million to manufacture, assemble, test and deliver 57mm MK 295 Mod 0 High Explosive Pre-Fragmented, Programmable, Proximity Fuzed (HE-3P) cartridges. The firm-fixed-price contract was awarded by the Naval Surface Warfare Center’s Indian Head Division, and deliveries are expected to be completed by September 2037.

57mm MK 295 HE-3P Contract Details

BAE Systems will produce completed MK 295 cartridges and perform the assembly and testing required before delivery. The award notice describes a three-year ordering period, while the delivery schedule extends through September 2037.

Most of the work will take place in Karlskoga, Sweden, which accounts for 57% of contract performance, and Maple Grove, Minnesota, which accounts for 40%. The remaining work is distributed among Perry, Florida; Camden, Arkansas; and Winchester, Kentucky.

The cartridge is ammunition for the Navy’s 57mm Mk 110 gun. In a Naval Sea Systems Command account of shipboard live-fire testing, the Navy described the gun’s programmable, proximity-fuzed ammunition as offering six selectable firing modes. The testing included engagements against representative fast inshore attack craft.

Award and Contractor Background

The Navy awarded the contract without competition, citing BAE Systems as the only responsible source able to meet the requirement. Navy procurement planning published in April 2026 also identified BAE Systems as the planned single-source supplier for MK 295 rounds. That plan projected first deliveries in 2029 for several purchases, illustrating the lengthy production-to-delivery schedule, but its projected awards are not confirmation of completed orders.

BAE Systems Land & Armaments has also held contracts for other 57mm ammunition items. A MK 296 target-practice cartridge contract had a potential value of $13.5 million and a scheduled performance end in October 2024; a 57mm dummy-cartridge contract had a potential value of $1.8 million and a scheduled performance end in January 2026.

This award was disclosed by the DoW in its daily press release. Additional contract details will be available on HigherGov in approximately 90 days under N0017426D1023 after the contract is formally disclosed by the government.