The Defense Department has finalized a framework deal with BAE Systems that could result in the purchase of up to 25,000 Advanced Precision Kill Weapon System (APKWS) guidance kits per year for a period lasting as long as seven years, the department said Monday.
APKWS modules turn standard, unguided 2.75-inch rockets into laser-guided munitions. All four military services currently deploy them, and the kit has emerged as a lower-cost option compared with air-to-air missiles for engaging small unmanned aerial systems.
Congress must still authorize and provide funding for the proposed procurement, the department noted. BAE has said it will boost production capacity while the parties negotiate a multiyear contract. Neither the Pentagon nor BAE disclosed the price for the planned purchases.
The framework also establishes a route to expand annual output to 35,000 kits to meet allied demand. The department explained that this extra capacity will be activated as partner countries formally submit requests through the Foreign Military Sales process.
Michael Duffey, the Pentagon’s undersecretary for acquisition and sustainment, said the multiyear demand commitment helps maintain full production lines, supplies interceptors to U.S. forces, and works out economically in the taxpayers’ favor.
BAE manufactures the kits in Hudson, New Hampshire, and Austin, Texas, and announced in February that it had produced its 100,000th APKWS kit.
The 25,000-per-year level referenced in the new framework aligns with capacity BAE has previously reported. In 2023, a company representative stated that APKWS had reached full-rate production with the ability to scale up to 25,000 units annually.
Tom Arseneault, president and CEO of BAE Systems Inc., said the system provides proven, dependable and cost-effective precision capabilities at scale to address changing threats and help ensure U.S. forces retain a decisive edge.
The Navy’s most recent five-year contract with BAE for APKWS, awarded in August 2025, carries a potential value of up to $1.74 billion. That deal covers up to 55,000 kits for the Navy, the Army and international customers, with production slated to conclude by December 2031.
Among prospective foreign purchases, the State Department in July cleared a potential $1.96 billion package for Saudi Arabia that would include as many as 20,000 APKWS kits, split between air-to-air and air-to-ground versions. Italy is also reported to be considering buying 5,031 kits aimed at counter-drone missions.
The APKWS framework is the latest in a series of Pentagon agreements this year intended to expand munitions production capacity.
In January, Lockheed Martin agreed to ramp up production of the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptor by more than threefold.
In March, BAE and Lockheed reached an agreement to increase production fourfold for seekers used on the Terminal High Altitude Area Defense (THAAD) interceptor. A separate THAAD framework signed in January subsequently resulted in a June contract valued at more than $35 billion for the interceptors themselves.
Similar Posts:
- US Secures $22.9 Billion Raytheon Deal: Boosting Tomahawk Missile Production!
- Lockheed Martin Receives Key Patriot Interceptor Parts: General Motors Delivers First Batch!
- Boeing Locks In 7-Year Deal to Triple PAC-3 MSE Seeker Output: Major Boost for Air Defenses
- Israel’s $2.3 Billion Deal: Spyder Air Defense Systems Sold to Romania!
- Trump’s Bold Move: Threatens to Slash Raytheon’s Major Government Contract!
Jamal Peterson reports on defense, aerospace, and tech policy. With a military background and a strategic mind, he dissects complex subjects with clarity, offering readers sharp, reliable insights.
