BAE Systems has been awarded a new five-year, Indefinite Delivery, Indefinite Quantity (IDIQ) contract by the U.S. Navy for continued production of its APKWS® (Advanced Precision Kill Weapon System) laser-guidance kits, with a potential value of US$1.7 billion. The contract includes an initial order valued at US$322 million.
The award enables the U.S. Navy to procure tens of thousands of APKWS guidance kits over the contract period, responding to growing domestic and international demand for cost-effective precision munitions. The kits will be available to all U.S. armed forces and approved allies through the Foreign Military Sales (FMS) programme.
Combat-proven across multiple domains, APKWS guidance kits provide precision strike capability for air-to-surface, surface-to-surface, surface-to-air, and air-to-air missions, delivering operational flexibility at a fraction of the cost of traditional guided weapons.
“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.”
Transforming unguided rockets into precision weapons
The APKWS guidance kit converts standard 2.75-inch unguided rockets into laser-guided precision munitions, allowing operators to engage soft and armoured, stationary and moving targets while significantly reducing collateral damage.
Highly versatile, APKWS can be launched from:
- Rotary- and fixed-wing aircraft
- Unmanned aerial vehicles (UAVs)
- Static and vehicle-mounted ground platforms
- Maritime vessels
The system is compatible with existing inventories of rocket motors, warheads and fuzes, requires minimal operator training, and features a simple, low-cost maintenance concept—making it an efficient upgrade path for armed forces seeking affordable precision strike capability.
Proven production and supply chain
BAE Systems has maintained full-rate production of APKWS for more than 12 years, supporting U.S. and allied forces with reliable, high-volume delivery. The company leverages a robust supply chain and established manufacturing capacity to meet urgent operational requirements.
APKWS laser-guidance kits are produced at BAE Systems’ advanced manufacturing facilities in Hudson, New Hampshire, and Austin, Texas.
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