BAE challenges loss of $12B nuclear weapon support contract

A Minuteman missile in a silo at the Minuteman Missile National Historic Site in South Dakota.

A Minuteman missile in a silo at the Minuteman Missile National Historic Site in South Dakota. Gettyimages.com/ zrfphoto

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BAE Systems and Guidehouse are fighting to manage the retirement of the Minuteman III missile and deployment of its replacement.

BAE Systems has filed a protest after it lost a $12 billion contract to manage deployment of the next generation of intercontinental ballistic missiles for the U.S. Air Force.

The Integration Support Contract 2.0 covers the sustainment of the current Minuteman III missiles, as well as the retirement and deployment of its successor system called the Ground-Based Strategic Deterrent. Northrop Grumman is building the missile itself that is being called Sentinel.

Minuteman III was deployed in 1970 with an expected lifespan at the time of about 10 years.

ISC 2 runs for 18 years and covers services such as cybersecurity, digital engineering, model-based systems engineering and change management.

BAE holds the current contract and won the ISC 2.0 recompete in June 2022, but Guidehouse and Jacobs filed protests against the award. Then in October 2022, the Government Accountability Office told the Air Force to re-evaluate proposals.

In February, the Air Force picked Guidehouse as the new winner.

BAE filed its protest on Tuesday and a decision from GAO is expected on June 20.