Pentagon awards $1.74B contract for APKWS rockets
BAE Systems Information and Electronic Warfare Systems, based in Hudson, New Hampshire, has been awarded a $1,7 billion contract for the production and delivery of Advanced Precision Kill Weapon System II (APKWS) rounds, the Pentagon announced.
According to the Department of Defense, the contract covers up to 55,000 APKWS units under Full Rate Production Lots 13 through 17. The program upgrades the 2.75-inch Hydra rocket into a semi-active laser-guided precision weapon. Deliveries will support the U.S. Navy, U.S. Army, and Foreign Military Sales customers.
Work under the contract will be distributed across multiple sites in the United States, the United Kingdom, and Canada. Major production work will take place in Hudson, New Hampshire (31%); Whippany, New Jersey (22%); and Plymouth, United Kingdom (16%). Additional manufacturing and component work will be carried out 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 at Patuxent River, Maryland, is the contracting authority. No funds were obligated at the time of the award; funds will be obligated on individual orders as they are issued. The Pentagon noted that the award was not competed.
The APKWS system, developed by a team of BAE Systems, Northrop Grumman, and General Dynamics, converts the unguided Hydra 70 mm rocket into a precision-guided munition. By adding a laser guidance kit, the rocket is transformed into an accurate and relatively low-cost weapon system suitable for a wide range of missions.
The APKWS system is roughly one-third the cost and one-third the weight of the existing inventory of laser-guided weapons. It delivers a lower explosive yield, making it more suitable for operations in environments where minimizing collateral damage is critical. In addition, ordnance personnel can load and unload the system in one quarter of the time compared to other precision weapons.
The program has gained traction across multiple U.S. services and allied militaries due to its cost-effectiveness and operational flexibility. The APKWS is compatible with a variety of fixed-wing aircraft, helicopters, and unmanned aerial platforms. By combining laser guidance with the existing Hydra rocket infrastructure, it allows militaries to enhance precision strike capabilities without a complete overhaul of current inventories.
