BAE Systems Information and Electronic Warfare Systems, based in Hudson, New Hampshire, has been awarded a substantial contract worth up to $1.74 billion for the production and delivery of the Advanced Precision Kill Weapon System II (APKWS), the Pentagon announced.
According to the Department of Defense, the contract covers a maximum of 55,000 APKWS units across Full-Rate Production Lots 13 through 17. The program provides a significant upgrade to the standard 2.75-inch Hydra rocket, transforming it into a semi-active, laser-guided precision weapon. Deliveries will support the U.S. Navy, U.S. Army, and various international customers under the Foreign Military Sales (FMS) program.
Work under the contract will be distributed across numerous locations in the United States, the United Kingdom, and Canada, reflecting a global supply chain. Primary production will occur in Hudson, New Hampshire (31%); Whippany, New Jersey (22%); and Plymouth, United Kingdom (16%). Additional component manufacturing and assembly will be performed in Austin, Texas; Bristol, Pennsylvania; Rochester, New York; Kitchener, Ontario; Westminster, Maryland; Ronan, Montana; Topsfield, Massachusetts; Pomfret, Connecticut; Danbury, Connecticut; Anaheim, California; Tempe, Arizona; Ipswich, Massachusetts; Centennial, Colorado; Carson, California; and Boston, Massachusetts. The contract is expected to be completed by December 2031.
The Naval Air Systems Command in Patuxent River, Maryland, is the contracting activity. No funds were obligated at the time of the award; funding will be committed on individual delivery orders as they are issued. The Pentagon noted that this contract was awarded on a non-competitive basis.
A Cost-Effective Precision Upgrade
The APKWS system, developed by a team including BAE Systems, Northrop Grumman, and General Dynamics, is designed as a simple, plug-and-play guidance kit. It converts the widely used, unguided 70mm Hydra rocket into a precise, laser-guided munition. By adding this laser-guidance section, the rocket is transformed into a highly accurate and relatively low-cost weapon system suitable for a wide range of missions.
Key advantages of the APKWS system include:
Efficiency: It costs and weighs approximately one-third of other laser-guided weapons in the U.S. inventory.
Low Collateral Damage: Its lower-yield warhead makes it ideal for operations in environments where minimizing collateral damage is critical.
Speed: Ordnance personnel can load and unload the APKWS system in a quarter of the time required for other precision munitions.
The program has been widely adopted by multiple branches of the U.S. military and allied forces due to its cost-effectiveness and operational flexibility. APKWS is compatible with a diverse array of fixed-wing aircraft, helicopters, and drones. By integrating laser guidance with the existing Hydra rocket infrastructure, the system allows military forces to enhance their precision strike capabilities without a complete and costly overhaul of their current weapon stockpiles.