Kratos Defense & Security Solutions has secured a significant $61.1 million contract modification from the U.S. Navy for the continued production of its BQM-177A subsonic aerial targets. This award funds the seventh full-rate production lot, covering 70 advanced target drones, complete with Rocket-Assisted Takeoff (RATO) kits and associated technical data. These systems are critical for the Navy’s weapons system testing, evaluation, and fleet training exercises, ensuring warfighters are prepared for real-world threats.
Steve Fendley, President of Kratos’ Unmanned Systems Division, emphasized that this award is a testament to the Navy’s confidence in Kratos’ ability to deliver high-performance, cost-effective solutions at scale. “This modification not only fulfills immediate fleet requirements but also validates our strategy of providing mission-relevant systems that are production-ready,” Fendley stated. The exercise of this final option brings the total contract value to nearly $238.8 million.
Looking ahead, Kratos is proactively investing in capital improvements to enhance its production capacity and efficiency. This forward-looking investment positions the company to seamlessly handle anticipated future full-rate production contracts and evolving customer demands.
The BQM-177A is engineered to accurately replicate advanced subsonic threats, providing a realistic challenge for the Navy’s most sophisticated weapons systems. Production efforts will be distributed across Kratos’ national footprint, with primary work in Sacramento, Dallas, and Fort Walton Beach. All work is scheduled for completion by August 2028.
