Kratos Defense & Security Solutions has been awarded a $61.1 million contract modification from the U.S. Navy for the production of 70 BQM-177A subsonic aerial targets. The modification, which exercises options under an existing firm-fixed-price contract (N0001923C0021), also includes the procurement of 70 Rocket-Assisted Takeoff (RATO) attachment kits and supporting technical data.
The new award funds the seventh full-rate production lot for the BQM-177A program. These target drones are integral to the U.S. Navy’s mission to conduct realistic weapons system testing and provide high-quality training for fleet personnel, simulating current and emerging subsonic threats.
“The Navy’s continued investment in the BQM-177A program demonstrates the platform’s reliability and performance,” said Steve Fendley, President of Kratos’ Unmanned Systems Division. “With this award, we are executing on the final option at the maximum negotiated quantity, bringing the total contract value to over $238 million. We are simultaneously investing in our production capabilities to ensure we remain ready for future requirements.”
Work will be distributed across multiple Kratos sites, with major operations in Sacramento (50%) and Dallas (20%), and supporting work in Florida, Virginia, and other locations. The contract work is expected to be completed by August 2028.
