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. Announced on December 10, the contract includes an initial order of $322 million and is structured
as a five-year indefinite delivery/indefinite quantity (ID/IQ) agreement. This contract allows for the production of up to 55,000 APKWS kits, which are designed to convert 70 mm unguided rockets into precision-guided munitions. These kits are available to all US armed forces and can also be sold to allied nations through foreign defense sales. The kits are compatible with various platforms, including rotary and fixed-wing aircraft, unmanned aerial vehicles, and maritime vessels. BAE Systems has been in full-rate production of these kits since 2013, with manufacturing facilities in Hudson, New Hampshire, and Austin, Texas.
Why It's Important?
This contract is significant as it enhances the precision strike capabilities of the US military, allowing for more effective and cost-efficient use of existing munitions. By converting unguided rockets into precision-guided weapons, the APKWS kits provide a versatile solution for various combat scenarios, potentially reducing collateral damage and increasing mission success rates. The contract also underscores the strategic importance of maintaining a robust supply chain for defense manufacturing, which BAE Systems supports through its facilities in New Hampshire and Texas. Additionally, the availability of these kits to allied nations strengthens international defense partnerships and interoperability.
What's Next?
The contract allows the US Navy to purchase APKWS guidance kits until December 2030, ensuring a steady supply for the next decade. BAE Systems will deliver the kits on a set schedule, supporting ongoing and future military operations. The continued production and deployment of these kits may lead to further innovations in precision-guided munitions technology. Additionally, the potential for foreign defense sales could expand the market for BAE Systems, enhancing its role as a key player in the global defense industry.
