What's Happening?
The US Navy has awarded a $1.7 billion contract to BAE Systems for the production of Advanced Precision Kill Weapon System (APKWS) laser guidance kits. This contract includes an initial order of $322 million and is structured as a five-year indefinite
delivery/indefinite quantity (ID/IQ) agreement. The APKWS kits are designed to convert 70 mm unguided rockets into low-cost, laser-guided precision munitions. These kits are available to all US armed forces and can be sold to allied nations through foreign defense sales. The contract allows the Navy to purchase up to 55,000 kits until December 2030. The kits can be used with rotary and fixed-wing aircraft, unmanned aerial vehicles, and various ground and maritime platforms. BAE Systems has been in full-rate production of these kits since 2013, leveraging manufacturing facilities in Hudson, New Hampshire, and Austin, Texas.
Why It's Important?
This contract underscores the US Navy's commitment to enhancing its precision strike capabilities. By converting existing unguided rockets into precision munitions, the Navy can increase the effectiveness of its arsenal while potentially reducing costs. The availability of these kits to allied forces also strengthens international defense partnerships and interoperability. For BAE Systems, this contract solidifies its position as a key supplier of precision guidance technology, potentially leading to further contracts and collaborations. The robust supply chain and production capabilities highlighted by BAE Systems ensure that the Navy and its allies have reliable access to these critical munitions.
What's Next?
The delivery of the APKWS kits will proceed on a set schedule, with the Navy able to make purchases until the end of 2030. As the kits are integrated into various military platforms, there may be further developments in their deployment and use in different operational contexts. Additionally, the success of this contract could lead to expanded foreign military sales, enhancing the global reach of BAE Systems' technology. The ongoing production and delivery will likely involve continued collaboration between BAE Systems and the US military to ensure the kits meet evolving operational needs.
