BAE Systems announced it had signed a multi-year framework agreement for up to seven years of procurement with the U.S. Department of Defense, referred to by the Trump administration as the U.S. Department of War, to increase production capacity of its laser-guidance kits.
The agreement accelerates the delivery of proven, cost-effective precision munitions, the company said and would increase production of its APKWS laser-guidance kits up to 35,000 units per year while providing surge-ready support for operational demands.
“APKWS delivers proven, reliable and affordable precision at scale to counter evolving threats and ensure our warfighters maintain a decisive advantage,” said Tom Arseneault, president and CEO of BAE Systems, Inc. “This agreement highlights the importance of sustained investment in critical munitions to strengthen readiness and equip forces for evolving operational needs.”
Under the agreement, BAE Systems will increase production while negotiating the multi-year contract. APKWS kits, the company said, are combat-proven and cost-effective, while providing a multi-mission solution for precision strikes against a range of threats, including countering unmanned aircraft systems. The framework agreement reinforces the American “Arsenal of Freedom” by accelerating delivery and strengthening supply of critical munition, the company said.
The agreement is aligned with the department’s Acquisition Transformation Strategy, the company said, and BAE Systems has made sustained investments into advanced manufacturing capacity, materials and human expertise, as well as the company’s supply chain and proven partners.
The APKWS laser-guidance kits are produced at the company’s manufacturing facility in Hudson, N.H., and Austin, Texas.