NAVAIR Intends to Award a Contract to Kratos for up to 60 BQM-177A Surface Launched Aerial Targets

July 17, 2018


Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced today that it expects its Unmanned Systems Division (USD) to receive a contract as reflected in the July 3, 2018 announcement from the Naval Air Systems Command:  

“The Naval Air Systems Command (NAVAIR) intends to award a contract to Kratos Unmanned Aerial Systems, Inc. (KUAS), Roseville, CA, on an other than full and open basis procuring: (1) the supplies and services to provide a quantity of up to sixty (60) BQM-177A surface launched aerial targets, with deliveries from second quarter FY20 through second quarter FY21, that emulate anti-ship cruise missiles and technical and administrative data associated with the BQM-177A.

The effort shall be procured pursuant to 10 U.S.C. 2304(c)(1) and FAR 6.302-1, "Only One Responsible Source and No Other Type of Supplies or Services will Satisfy Agency Requirements."  On 28 January 2011, Composite Engineering, Inc. (CEi), a Kratos Company, was awarded the Engineering and Manufacturing Development Contract N00019-11-C-0024 under a best value full and open competition. CEi underwent a name change to KUAS in January 2018. KUAS is the original designer, developer, and manufacturer of the BQM-177A and its sole integrator. KUAS is the only known contractor with the requisite knowledge, proprietary rights, maintenance and repair experience, and noncommercial technical data and software rights to meet the Government's requirements for the BQM-177A SSAT system.”

Steve Fendley, President of Kratos Unmanned Systems Division, said, ”All of Kratos Unmanned Systems Division is both proud and honored to receive the U.S. Navy’s formal intention for a third low rate initial production year for up to 60 BQM–177A high performance unmanned aerial target drone systems.  The United States Navy is one of Kratos’ most important customers, and we are continually striving to exceed their expectations and mission requirements.”

Eric DeMarco, President and CEO of Kratos, said, “The United States Navy SSAT program is a most recent example of the success of Kratos’ strategy and business plan to be the differentiated, go to, affordable alternative prime system and platform provider to the U.S. Department of Defense and National Security Agencies.  We expect the BQM-177A SSAT program and system to be multi-year, decade in length, as we strive to not only meet, but exceed all performance, relationship and affordability requirements and expectations of our Navy partner.”

Source : Kratos Defense & Security Solutions

NAVAIR Intends to Award a Contract to  Kratos  for up to 60 BQM-177A Surface Launched Aerial Targets