The US Navy has awarded Castelion an $89.99m firm-fixed-price order to advance the development of its Blackbeard hypersonic weapon system to an early operational capability (EOC).
The deal was issued under a previously established basic ordering agreement as part of a Small Business Innovation Research (SBIR) Phase III effort focused on creating a “Low Cost Highly Manufacturable Long Range Strike Weapon Production,” according to official contract announcements from the Department of War (Dow).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under the terms of the new order, Castelion will deliver engineering, technical, logistics, and manufacturing services for the Blackbeard system.
The contract will support the production of 50 Early Operational Capability (EOC) weapons and the weapon’s transition into a formal Navy acquisition programme.
Work will be carried out in Torrance, California, with completion expected by August 2028.
In addition to advancing Blackbeard’s operational readiness, the order also includes funding for Defence Exportability Features design modifications “to accelerate export to our allies and partners,” according to the announcement.
The contract will be financed with a combination of fiscal 2025 and 2026 research, development, test and evaluation funds from both Defence-Wide and Navy accounts.
Of the total amount, $24.23m is set to expire at the end of the current fiscal year.
The contract was not competed, and the Naval Air Warfare Center Aircraft Division at Lakehurst, New Jersey, is managing the acquisition.
Castelion’s new award follows the company’s recent $1bn Series C fundraising round, which was announced in close proximity to the Navy deal.
The company said the new capital will largely be used to expand manufacturing capacity for Blackbeard at its Project Ranger site in Sandoval County, New Mexico, and to further develop a broader portfolio of strike and defensive systems.
Earlier in April, Castelion also secured a separate $105m contract from the US Navy supporting the continued development and integration of the Blackbeard weapon system for the F/A-18 aircraft.
