BAE Systems has been awarded a major $1.743 billion contract to produce up to 55,000 Advanced Precision Kill Weapon System II (APKWS II) rockets. The contract, awarded to its Information and Electronic Warfare Systems unit in Hudson, New Hampshire, is structured as a firm-fixed-price, indefinite-delivery/indefinite-quantity agreement.
The deal covers Full-Rate Production Lots 13 through 17 and includes deliveries to the U.S. Navy, U.S. Army, and approved international customers under the Foreign Military Sales program. Deliveries will continue through December 2031, reinforcing supply lines for one of the Pentagon’s most widely used precision strike systems.
Regarded as a cost-effective solution for modern warfare, APKWS II plays a vital role in enhancing operational effectiveness. The contract reflects the U.S. Department of Defense’s long-term strategy to maintain robust stockpiles of reliable guided munitions.
Spanning five production lots, this award guarantees industrial continuity, secures the supply chain, and highlights the growing importance of APKWS II in both U.S. and allied defense operations over the next decade.
