The Department of War announced that it has reached a framework agreement with BAE Systems to ramp up production of the combat-proven Advanced Precision Kill Weapon System (APKWS). The multi-year agreement outlines the procurement of up to 25,000 APKWS guidance sections annually for up to seven years, pending congressional authorization and appropriations.
“The Arsenal of Freedom exists for one purpose: to guarantee our warfighters decisive advantage on the battlefield,”
said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment.
“By securing multi-year demand, this agreement keeps production lines running at capacity, provides our forces with interceptor inventory, and flips the cost calculus in the taxpayer’s favour.”
The agreement locks production over previous contracts, establishing the sustained demand signal BAE Systems needs to procure long-lead items and expand its skilled workforce. APKWS delivers a combat-proven, high-lethality interceptor while countering widespread aerial threats.
Beyond the baseline of 25,000 units per year, the framework establishes an actionable pathway to surge output up to 35,000 units annually for international allies. This industrial expansion will be unlocked as partner nations formalize orders via Foreign Military Sales Letters of Request.
By leveraging allied demand to capitalize new domestic production lines, the Department strengthens the nation’s industrial base. Each active line directly expands sovereign U.S. surge capacity, preserving warm, high-rate manufacturing infrastructure ready to respond on short notice.
The agreement was finalized in partnership across the U.S. Army, Navy, Air Force, and Marine Corps.
“APKWS delivers proven, reliable and affordable precision at scale to counter evolving threats and ensure our warfighters maintain a decisive advantage,”
said Tom Arseneault, President and CEO of BAE Systems, Inc.
“This agreement highlights the importance of sustained investment in critical munitions to strengthen readiness and equip forces for evolving operational needs.”
BAE Systems’ APKWS laser-guidance kits transform unguided 2.75-inch rockets into precision-guided munitions. The kits are currently fielded by the U.S. Air Force, Army, Marine Corps and Navy, and are available to U.S. allies. The kits can be deployed across a wide range of platforms and are effective in air-to-surface, surface-to-surface, surface-to-air, and air-to-air engagements.
Aligned with the DoW’s Acquisition Transformation Strategy, BAE Systems has made sustained investments in advanced manufacturing capacity, materials and human expertise, supported by a robust supply chain and a proven APKWS partner ecosystem. BAE Systems continues to develop upgrades, mission specific variants and new technologies to address emerging threats while expanding capacity to meet future demand.
APKWS laser-guidance kits are produced at BAE Systems’ state-of-the-art manufacturing facilities in Hudson, New Hampshire and Austin, Texas.
Source: DOW; BAE Systems