BAE Systems Secures $1.7 Billion Contract for Advanced APKWS Laser-Guidance Kits Production

BAE Systems Wins Major Contract from U.S. Navy



In a significant move for military capabilities, the U.S. Navy has awarded BAE Systems (LON: BA) a five-year contract worth up to $1.7 billion for the production of Advanced Precision Kill Weapon System (APKWS®) laser-guidance kits. This contract is designed to fulfill both domestic and international demand for precision munitions that can be deployed by U.S. armed forces and allied nations.

The initial order under this indefinite delivery, indefinite quantity contract stands at $322 million, enabling the procurement of tens of thousands of APKWS guidance kits over the next five years. This initiative aims to enhance the operational effectiveness of the U.S. military by providing a cost-effective solution for precision strikes in various combat scenarios.

Neeta Jayaraman, director of Precision Guidance and Sensing Solutions at BAE Systems, emphasized the significance of this contract, stating, “This award reinforces the value of proven and cost-efficient precision munitions, which have consistently demonstrated their effectiveness and versatility across multiple platforms and missions.” The APKWS guidance kits have been successfully utilized in air-to-surface, surface-to-surface, surface-to-air, and air-to-air operations, showcasing their adaptability and utility on the battlefield.

One of the standout features of the APKWS system is its capability to transform conventional unguided 2.75-inch rockets into laser-guided precision munitions. This conversion allows operators to engage a diverse range of soft and armored targets while minimizing collateral damage, thereby significantly increasing the effectiveness and safety of military operations.

The flexibility of the APKWS guidance kit is remarkable; it can be deployed from various platforms, including rotary-wing and fixed-wing aircraft, unmanned aerial vehicles (UAVs), ground platforms, and maritime vessels. The system is also compatible with existing inventories of rocket motors, warheads, and fuzes, establishing it as a versatile addition to military arsenals.

With minimal training requirements and an affordable maintenance model, the APKWS system provides an efficient solution for improving the precision of military strikes. The long-term production relationship between BAE Systems and the U.S. armed forces demonstrates a commitment to advancing military technology while ensuring rapid delivery to personnel in the field.

For over 12 years, BAE Systems has maintained full-rate production of the APKWS guidance kit, establishing a robust supply chain and consistent manufacturing capacity at its state-of-the-art facilities in Hudson, New Hampshire, and Austin, Texas. This ensures that not only the U.S. military but also international allies can access these advanced munitions swiftly and reliably.

As global military dynamics evolve, the ability to deliver precision munitions rapidly is increasingly vital. This contract illustrates BAE Systems’ role in meeting the changing needs of defense forces worldwide and enhancing operational readiness by ensuring access to advanced technology and solutions.

For more detailed information on BAE Systems and the APKWS guidance kit, you can visit BAE Systems Official Site.

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