The 5-year contract is worth as much as $780 million and contains an initial $18.4 million order for IMX-101, a replacement for TNT used in artillery rounds.
"The work we do at Holston is critical to the defense of our nation and to the safety of our men and women in uniform," said Erin Moseley, president of BAE Systems' Support Solutions sector. "IMX-101 is truly innovative and is revolutionizing military ordnance."
IMX-101 was developed by BAE Systems. It is part of a family of explosives under development and called Insensitive Munitions eXplosives, which have a more stable explosive formulation, making them safer to transport and handle.
The Holston Army Ammunition Plant in Kingsport is owned by the Army but managed and operated by BAE Systems.