Air Force Awards Kratos Sole Source $79.8 Million Contract for 60 BQM-167A Target Aircraft Systems (Lot 20)
Kratos Defense & Security Solutions (Nasdaq: KTOS) has secured a $79.8 million contract from the U.S. Air Force for 60 BQM-167A Air Force Subscale Aerial Target (AFSAT) aircraft systems. This Lot 20 procurement includes mission kits, flight consumables, and technical data. The contract incorporates Gas, Aero, Payload, Power (GAPP) enhancements, marking the largest capability upgrade for the BQM-167A to date. These improvements aim to replicate more advanced threats, enhancing weapon systems verification and training for the USAF. This order represents the largest single purchase of BQM-167As by the Air Force Life Cycle Management Center. The total contract value could reach $374 million if all options for Lots 17-21 and Spares are exercised at maximum production quantities.
Kratos Defense & Security Solutions (Nasdaq: KTOS) ha ottenuto un contratto di 79,8 milioni di dollari dall'Ufficio Air Force degli Stati Uniti per 60 sistemi aerei BQM-167A Subscale Aerial Target (AFSAT). Questo acquisto del Lotto 20 include kit di missione, consumabili da volo e dati tecnici. Il contratto prevede miglioramenti Gas, Aero, Payload, Power (GAPP), segnando il più grande aggiornamento delle capacità per il BQM-167A fino ad oggi. Questi miglioramenti mirano a riprodurre minacce più avanzate, migliorando la verifica dei sistemi d'arma e la formazione per l'USAF. Questo ordine rappresenta il più grande acquisto singolo di BQM-167A da parte del Centro di Gestione del Ciclo di Vita dell'Air Force. Il valore totale del contratto potrebbe raggiungere 374 milioni di dollari se tutte le opzioni per i Lotti 17-21 e i pezzi di ricambio vengono esercitate con le massime quantità di produzione.
Kratos Defense & Security Solutions (Nasdaq: KTOS) ha asegurado un contrato de 79,8 millones de dólares de la Fuerza Aérea de EE.UU. para 60 sistemas aéreos BQM-167A Subscale Aerial Target (AFSAT). Esta adquisición del Lote 20 incluye kits de misión, consumibles de vuelo y datos técnicos. El contrato incluye mejoras Gas, Aero, Payload, Power (GAPP), marcando la mayor actualización de capacidad para el BQM-167A hasta la fecha. Estas mejoras tienen como objetivo replicar amenazas más avanzadas, mejorando la verificación de sistemas de armas y el entrenamiento para la USAF. Este pedido representa la mayor compra única de BQM-167A por parte del Centro de Gestión del Ciclo de Vida de la Fuerza Aérea. El valor total del contrato podría alcanzar 374 millones de dólares si se ejercen todas las opciones para los Lotes 17-21 y las piezas de repuesto en cantidades máximas de producción.
Kratos Defense & Security Solutions (Nasdaq: KTOS)가 미국 공군으로부터 7,980만 달러 계약을 체결했습니다. 이 계약은 60대의 BQM-167A 공군 하위 스케일 공중 목표(AFSAT) 항공기 시스템을 포함합니다. 이 20번째 물량 조달에는 임무 키트, 비행 소비품 및 기술 데이터가 포함됩니다. 계약에는 가스, 항공, 적재, 전력(GAPP) 향상사항이 포함되어 있으며, 이는 현재까지 BQM-167A의 가장 큰 능력 업그레이드를 의미합니다. 이러한 개선은 더 발전된 위협을 복제하여 USAF의 무기 시스템 검증 및 훈련을 강화하는 것을 목표로 합니다. 이 주문은 공군 생애 주기 관리 센터에서의 BQM-167A의 최대 단일 구매를 나타냅니다. 만약 17-21번 물량과 예비 부품에 대한 모든 옵션이 최대 생산량으로 수행된다면 계약 총액은 3억 7,400만 달러에 이를 수 있습니다.
Kratos Defense & Security Solutions (Nasdaq: KTOS) a obtenu un contrat de 79,8 millions de dollars de l'Armée de l'air des États-Unis pour 60 systèmes aériens BQM-167A Subscale Aerial Target (AFSAT). Cet achat du Lot 20 comprend des kits de mission, des consommables de vol et des données techniques. Le contrat inclut des améliorations Gaz, Aéro, Charge utile, Énergie (GAPP), marquant la plus grande mise à niveau des capacités du BQM-167A à ce jour. Ces améliorations visent à reproduire des menaces plus avancées, renforçant la vérification des systèmes d'armement et la formation pour l'USAF. Cette commande représente le plus grand achat unique de BQM-167A par le Centre de gestion du cycle de vie de l'Armée de l'air. La valeur totale du contrat pourrait atteindre 374 millions de dollars si toutes les options pour les Lots 17-21 et les pièces de rechange sont exercées en quantités maximales de production.
Kratos Defense & Security Solutions (Nasdaq: KTOS) hat einen Vertrag über 79,8 Millionen USD von der US Air Force für 60 BQM-167A Subscale Aerial Target (AFSAT) Flugzeugsysteme gesichert. Diese Beschaffung des Los 20 umfasst Missionskits, Flugverbrauchsmaterialien und technische Daten. Der Vertrag beinhaltet Gas, Aero, Payload, Power (GAPP) Verbesserungen, was das größte Fähigkeitsupdate für das BQM-167A bis heute darstellt. Diese Verbesserungen zielen darauf ab, fortschrittlichere Bedrohungen nachzubilden und die Überprüfung der Waffensysteme sowie das Training für die USAF zu verbessern. Dieser Auftrag stellt den größten Einzelkauf von BQM-167As durch das Air Force Life Cycle Management Center dar. Der Gesamtwert des Vertrags könnte 374 Millionen USD erreichen, wenn alle Optionen für die Lots 17-21 und Ersatzteile zu maximalen Produktionsmengen ausgeübt werden.
- Secured a $79.8 million contract for 60 BQM-167A target aircraft systems
- Largest capability upgrade to date with GAPP enhancements
- Largest single purchase of BQM-167As by the Air Force Life Cycle Management Center
- Potential total contract value of $374 million if all options are exercised
- None.
Insights
The
The GAPP enhancements incorporated in this contract are crucial, as they represent the largest capability upgrade to date for the BQM-167A. This positions Kratos favorably in the evolving defense landscape, potentially leading to more contracts and sustained demand. However, investors should note that the defense sector can be volatile, subject to government budget allocations and geopolitical factors.
The BQM-167A upgrade is a strategic move in the rapidly evolving field of aerial defense systems. The GAPP enhancements significantly improve the system's ability to replicate advanced threats, which is important for effective military training and weapons verification. This upgrade demonstrates Kratos' commitment to innovation and its ability to adapt to changing defense needs.
The 20-year longevity of the BQM-167A program speaks to its reliability and the Air Force's continued trust in Kratos' technology. The emphasis on affordability combined with advanced capabilities positions Kratos well against competitors. However, the defense technology landscape is highly competitive and Kratos must continue to innovate to maintain its market position.
This contract signals strong market demand for advanced aerial target systems, driven by the need to counter evolving threats from peer adversaries. The substantial order size - 60 aircraft - indicates a significant scaling up of the Air Force's training and testing capabilities. This could potentially influence other branches of the military or allied nations to follow suit, opening up new market opportunities for Kratos.
The emphasis on affordability in Kratos' systems is particularly relevant in the current global economic climate, where defense budgets are under scrutiny. This contract reinforces Kratos' market position and could lead to increased investor confidence. However, the company's heavy reliance on government contracts also exposes it to political and budgetary risks that investors should consider.
SAN DIEGO, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, today announced that Kratos has received a
Kratos / USAF BQM-167A AFSAT in Flight with Extremal Mission Payloads
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3fa3de68-7494-4fbd-83d1-506c8ca9333c
Steve Fendley, President of Kratos Unmanned Systems Division, said, “As our nation’s peer threat countries continuously grow their capabilities in both technology and mass, our country must train our military and test our defenses against current, relevant, accurate, and representative threat systems. Kratos is proud its BQM-167A has been a part of this solution for over 20 years and of the GAPP upgrades which increase the capability and extend the relevance of this affordable threat representative aircraft for years to come. We appreciate the collaborative, cooperative, positive team relationship we share with the USAF which enables Kratos and the USAF’s personnel to work in concert to realize these critical capability systems for our nation’s defense.”
Work will be performed at a Kratos manufacturing facility. Total contract value if the options for Lots 17-21 and Spares are all exercised at the maximum production quantities is
About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading-edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.
Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.
| Press Contact: Claire Burghoff claire.burghoff@kratosdefense.com Investor Information: 877-934-4687 investor@kratosdefense.com |
FAQ
What is the value of the contract Kratos (KTOS) received for BQM-167A aircraft systems?
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What enhancements are included in the latest Kratos (KTOS) BQM-167A contract?
What is the potential total value of the Kratos (KTOS) BQM-167A contract if all options are exercised?
