The London-listed company will perform inspections, maintenance and modifications for more than 300 T-34, T-44 and T-6 trainer aircraft used by the Chief of Naval Air Training in Florida and Texas.
“This is a major win for our team, significantly expanding our support to the US Navy for trainer aircraft,” said Gordon Eldridge, vice president and general manager of Aerospace Solutions at BAE Systems.
Dave Herr, president of BAE Systems Support Solutions, said: “This win strengthens our position in the aviation services market and creates opportunities for additional organic growth.”
It was a major win for BAE, which beat incumbent Sikorsky Aircraft, a unit of United Technologies Corp, and L-3 Communications Holdings to secure the contract.
This is BAE’s second major military deal in a week, and is expected to expand its services business significantly.
On Monday, BAE won a further £560m deal to complete the Audacious submarine for the Ministry of Defence.
It had already won £640m of work on Audacious.