The US Navy has awarded a $65m Other Transaction Agreement (OTA) to Zone 5 Technologies to deliver a new cruise missile variant, the AGM-188 Rusty Dagger, under the Coalition Heterogeneous Affordable Offensive Strike (CHAOS) programme.

The contract, brokered by CMG Networks on behalf of the Naval Aviation Systems Consortium, will see Zone 5 design, develop, test and deliver the missile for integration with US Navy and coalition forces.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

The AGM-188 Rusty Dagger is a cruise missile designed to address emerging requirements for cost-effective precision strike against both land-based and manoeuvring maritime targets.

The missile reportedly features a maximum range of 460km and carries a 260kg warhead, traveling at cruising speeds of 735 kilometres per hour.

The platform also incorporates navigation technology intended to resist jamming.

The existence of the ERAM was publicly disclosed in July 2024. Delivery to Ukraine is expected by 2026 as part of international military support, according to previously released information.

Zone 5 Technologies CEO Thomas Akers said: “Zone 5 is proud to partner with the Navy on CHAOS and deliver industry-best scalable maritime strike capabilities to the US and our allies.”

The CHAOS programme is intended to supply the US and allied partners, potentially through Foreign Military Sales, with an affordable, scalable, and adaptable strike weapon suitable for a range of operational scenarios.

The initiative is supported by the Navy’s Precision Strike Weapons (PMX201) programme office, with Zone 5 expected to draw on its previous experience in precision weapons development for both US service branches and international partners.

Last month, the US Navy also selected CoAspire to deliver its Rapidly Adaptable Affordable Cruise Missile-Extended Range (RAACM-ER) Ground-Launched variant for the CHAOS programme, highlighting the multi-vendor nature of the initiative and the emphasis on rapid, flexible acquisition of strike capabilities.