The US Department of Defense has established a new procurement framework with BAE Systems to expand production of Advanced Precision Kill Weapon System guidance kits, potentially raising annual output to 35,000 units. The framework will remain in place for up to seven years, during which BAE is expected to increase manufacturing capacity and negotiate a separate multiyear procurement agreement. The Pentagon’s initial target calls for as many as 25,000 kits each year for US forces. Production could subsequently rise to 35,000 annually if allied countries seek additional supplies through foreign military sales. APKWS technology transforms standard unguided 2.75-inch rockets into precision-guided weapons using laser guidance. The resulting munitions can be employed across several engagement types, including air-to-ground, ground-to-ground, surface-to-air and air-to-air missions. Demand is also being driven by the use of affordable guided weapons against unmanned aircraft. Production takes place at BAE facilities in New Hampshire and Texas. The latest initiative builds on a December 2025 US Navy agreement worth up to $1.7 billion over five years, which included an initial $322 million order. Additional development work involves L3Harris, which secured a $48.5 million contract for mechanical proximity fuzes designed to trigger warhead detonation near a target rather than requiring a direct hit.
