The United States Department of War has awarded BAE Systems a contract with a ceiling value of $145 million to develop, manufacture and deliver Counter Unmanned Aerial Systems (C-UAS) weapon systems, the department announced Feb. 11, 2026.
The award includes an initial $66,673,298 delivery order under FA8681-26-F-B012. Work will be performed in Hudson, New Hampshire, during an ordering period from Feb. 12, 2026, through Feb. 12, 2031. The first delivery order is scheduled for completion by July 31, 2027.
At award, $26,048,932 in fiscal 2026 research and development funds were obligated. The Air Force Life Cycle Management Center at Eglin Air Force Base is the contracting activity. The contract was issued as a sole-source acquisition under Federal Acquisition Regulation 6.302-1, citing only one responsible source.
The program supports development and production of systems to counter unmanned aerial threats, an increasing concern for U.S. and allied forces. BAE Systems’ Advanced Precision Kill Weapon System (APKWS) laser-guidance kits have been adapted for counter-UAS missions.
APKWS converts unguided rockets into precision laser-guided munitions. A newly developed proximity fuze for the standard M151 warhead enables engagement of Class 2 and Class 3 unmanned aircraft weighing less than 55 pounds, while retaining point-detonation capability.
Produced in Hudson, the system has been integrated on fighter aircraft to counter one-way attack drones, including platforms similar to the Iranian-designed Shahed series. By upgrading existing rocket inventories, APKWS offers a lower-cost alternative to traditional air defense interceptors, reducing cost per shot while maintaining precision against small aerial targets.
The Air Force Life Cycle Management Center will manage the program from Eglin Air Force Base.
Photo: F-15E Strike Eagle flies during a test of APKWS laser-guided rockets – Thomas Barley
Source:Â Defence Blog