BAE Systems Secures $172 Million U.S. Defense Contract for Multi-Domain Systems Development
BAE Systems Technology Solutions & Services Inc. has been awarded a $172.4 million contract by the U.S. Department of Defense to support the development and transition of advanced capabilities across multiple domains, including air, space, and cyber. The contract, issued as a cost-plus-fixed-fee task order under the Systems Analysis Worldwide VIII program, will fund engineering and evaluation work aimed at enhancing critical technologies used by the U.S. military. The project is set to be executed in Rockville, Maryland, with completion expected by September 2030. The Air Force Research Laboratory in Rome, New York, is managing the contract under the identifier FA8750-25-F-B021.
According to the DoD, the program is structured to support systems integration and the adaptation of emerging technologies into operational use across interconnected battlespace environments. At the time of the award, initial funding included $389,438 for research and development, $8.6 million for operations and maintenance, and $325,000 in additional FY2025 funds. Although only one bid was received, the contract reflects the growing importance of synchronized capability development across traditional and nontraditional domains as the U.S. military adapts to near-peer competition and hybrid threats.
The Systems Analysis Worldwide VIII contract emphasizes flexibility in transitioning advanced prototypes and technologies into fully deployable systems. These efforts are in line with broader Pentagon initiatives aimed at accelerating innovation cycles and ensuring that critical capabilities reach the warfighter faster. BAE Systems’ role will likely involve scenario-based evaluation, integration testing, and adaptation of solutions that can support real-time decision-making and enhanced situational awareness. The work will also contribute to future force design by evaluating how multi-domain systems interact in contested and dynamic operational environments.
This contract comes at a time of heightened attention on the integration of air, space, and cyber systems into a unified operational architecture. The Pentagon has increasingly prioritized multi-domain command and control frameworks, seeking to break down legacy barriers between service branches and technology platforms. BAE Systems, with an established footprint in defense engineering and systems integration, is positioned to contribute meaningfully to this effort. The company’s past performance in similar programs was likely a determining factor in the sole-offer award structure.
As military planners continue to emphasize speed, survivability, and interoperability, contracts like this one represent a pivot toward more agile, adaptive acquisition models. The award underscores the strategic importance of coordinated multi-domain capability development and positions BAE Systems as a key partner in shaping the technological backbone of future U.S. defense operations. The task order is both a continuation of ongoing efforts and a step forward in aligning national defense strategy with technological implementation.