Kratos Defense & Security Solutions, Inc.(NASDAQ:KTOS), a leading National Security Solutions provider and industry leading provider of high performance jet powered unmanned aerial target and tactical drone systems, announced today that Kratos has received a $25,413,946 contract for Lot 3 of Low Rate Initial Production for the BQM-177A Subsonic Aerial Target (SSAT) from the US Navy as reflected in the US Navy’s May 28, 2019 announcement.

BQM – 177i (Picture source: Kratos)

“Kratos Unmanned Aerial Systems Inc., Sacramento, California, is awarded a $25,413,946 firm-fixed-price contract to procure 34 low-rate initial production Lot 3 BQM-177A Subsonic Aerial Targets and technical data.  Work will be performed in Sacramento, California, and is expected to be completed March 2021.  Fiscal 2019 weapons procurement (Navy) funds in the amount of $25,413,946 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1.  The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-19-C-1024).”

Steve Fendley, Kratos Unmanned Systems Division President, commented, “This LRIP III award following the Initial Operational Capability (IOC) achievement announced earlier this year, represents the final milestone prior to the expected Full Rate Production start for Kratos’ BQM-177A SSAT.  Once in full rate production, these programs have historically been decades long both in operations and production.  The recapitalization of strategic weapon systems by the U.S. and its allies to address peer-level threats is driving the need for new and additional threat representative target drones to exercise our forces and defensive systems.  We are proud to be the sole source provider well into the future for this crucial high performance system that emulates anti-ship cruise missiles for the US Navy and our allies.”

The BQM-177A is the US Navy’s next-generation Sub-Sonic Aerial Target (SSAT). While it provides formidable threat emulation for air-to-air engagements, the BQM-177A’s aerodynamic design and unmatched performance capabilities make it the world’s best choice for highly-dynamic, high-subsonic, sea-skimming anti-ship cruise missile threat emulation.

Capable of speeds in excess of 0.95 Mach and a sea-skimming altitude as low as 10 feet, the BQM-177A has no equal when it comes to delivering realistic anti-ship missile threat emulation.

This highly-versatile aerial target supports a variety of mission requirements by carrying a wide array of internal and external payloads including proximity scoring, Identification Friend or Foe (IFF), passive and active RF augmentation, electronic counter-measures, infrared (IR) augmentation (plume pods), chaff and flare dispensers, and towed targets.

BQM – 177i Shipboard Operations (Picture source: Kratos)