HUDSON, N.H. — The U.S. Navy has awarded BAE Systems a five-year, indefinite delivery, indefinite quantity (IDIQ) contract with a maximum value of $1.7 billion to continue full-rate production of APKWS® laser-guidance kits. The agreement includes an initial order valued at $322 million, securing the supply of these precision munitions for U.S. armed forces and international allies.
Scaling Precision Strike Capabilities
The contract structure enables the Navy to procure tens of thousands of guidance kits through 2030 to meet increasing global demand. The Advanced Precision Kill Weapon System (APKWS) program transforms standard unguided 2.75-inch (70 mm) rockets into laser-guided precision munitions. This capability is critical for engaging soft and armored targets—both stationary and moving—while minimizing collateral damage in complex operating environments.
BAE Systems has maintained full-rate production of the system for more than 12 years. The kits are available to all branches of the U.S. military and are widely exported via Foreign Military Sales (FMS), reflecting a strategic push to equip allied nations with cost-effective counter-asset solutions.
System Interoperability and Specifications
The APKWS design focuses on modularity and ease of integration. The guidance section screws between the warhead and the rocket motor of existing inventories, requiring no modifications to the launch platform.
- Platform Agnostic: Validated for use on rotary- and fixed-wing aircraft, unmanned aerial vehicles (UAVs), static and mounted ground platforms, and maritime vessels.
- Mission Versatility: Capable of executing air-to-surface, surface-to-surface, surface-to-air, and air-to-air missions.
- Logistics: The system utilizes existing rocket motors, warheads, and fuzes, significantly reducing the logistical footprint and training requirements compared to entirely new weapon systems.
Executive Perspective
“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,” said Neeta Jayaraman, director of Precision Guidance and Sensing Solutions at BAE Systems. “The APKWS guidance kit provides advanced capabilities to our armed forces and foreign allies, and high-volume production ensures rapid and efficient delivery to the warfighter.”
Manufacturing and Outlook
Production for the APKWS program will continue at BAE Systems’ manufacturing facilities in Hudson, New Hampshire, and Austin, Texas. By leveraging established supply chains and active production lines, the company aims to deliver these systems at a fraction of the cost of traditional guided missiles, addressing the economic asymmetry often found in modern conflicts, such as counter-UAS operations.