The US Navy has granted Kratos Defense & Security Solutions a $61.07m modification to a previously awarded firm-fixed-price contract.
This change exercises options for the full-rate production Lot Seven of BQM-177A Subsonic Aerial Targets (SSAT).
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The contract calls for the delivery of 70 BQM-177A units, along with 70 Rocket-Assisted Take-off (RATO) attachment kits and related technical and administrative data. These systems will be used to support weapons system testing, evaluation, and fleet training requirements for the US Navy.
The BQM-177A is designed as a subsonic, surface-launched aerial target, intended to simulate realistic threat environments during advanced weapons testing and fleet exercises.
According to Kratos, the BQM-177A can reach speeds above 0.95 Mach, can be launched from ships, and is able to operate at altitudes as low as 6.6 feet above the sea.
The aerial target is designed to support different mission requirements and can carry various internal and external payloads. These payloads include scoring systems, Identification Friend-or-Foe (IFF), passive and active radio frequency augmentation, infrared augmentation such as fixed flares and plume pods, electronic countermeasures, chaff and flare dispensers, and tow targets.
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By GlobalDataKratos will carry out the contract work across several sites in the US, with completion scheduled for August 2028.
Sacramento, California will account for 50% of the work, Dallas, Texas for 20%, and Fort Walton Beach, Florida for 5%. Blacksburg, Virginia will contribute 4%, while Santa Ana, California, Newton, Kansas, Concord, California, Milwaukie, Oregon, and Chatsworth, California will each contribute 2%.
The remaining 11% of the work will take place at various other locations within the continental US.
Kratos Unmanned Systems division president Steve Fendley said: “Achieving full-rate production of the BQM-177A reflects the Navy’s continued confidence in Kratos’ ability to deliver reliable, high-performance aerial target systems at scale.
“This award underscores our commitment to providing affordable, mission-relevant unmanned systems that directly support Navy training, test, and evaluation requirements while maintaining production readiness for future demand.”
This final option, like earlier awards and modifications, covers the maximum agreed production quantity of seventy aircraft, bringing the total contract value to $238.8m.
In 2023, Kratos Defense & Security Solutions secured a $49m full rate production (FRP) contract from the US Navy for Lot 4 of the BQM-177A SSAT.
“In anticipation of further full rate production contracts, Kratos is continuing to invest in capital production improvements that will further improve either our capacity or efficiency,” Steve Fendley said.
