Kratos Defense & Security Solutions has been awarded a $61.1 million modification to an existing U.S. Navy contract for the full-rate production of BQM-177A subsonic aerial targets. The award exercises options for Lot Seven, covering 70 aerial targets, 70 Rocket-Assisted Takeoff attachment kits, and associated technical data to support fleet training and weapons system evaluation.
“This full-rate production award reflects the Navy’s confidence in Kratos’ ability to deliver high-performance target systems at scale,” said Steve Fendley, President of Kratos’ Unmanned Systems Division. He noted that the modification represents the maximum negotiated quantity of 70 aircraft, bringing the total contract value to approximately $238.8 million.
The BQM-177A is a surface-launched subsonic aerial target designed to simulate advanced threats for realistic testing and training scenarios. Production work will be distributed across multiple U.S. locations, including Sacramento, Dallas, and Fort Walton Beach, with completion expected by August 2028.
Kratos continues to invest in capital improvements to enhance production capacity and efficiency in anticipation of future contract awards.
