Kratos Receives $31.8 M Sole Source Unmanned Aerial Target Drone Contract Award from USAF

Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that its Unmanned Systems Division has received a $31,876,681 award for the Lot 15 option on a previously awarded Air Force Subscale Aerial Target (AFSAT) Lots 14-16 contract FA8678-18-C-0002. Kratos will provide an additional quantity of 35 AFSAT production target aircraft and the associated warranty. Work will be performed in Sacramento, California, and is expected to be complete by 31 May 2021. The Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity.

The contract will be performed by the Kratos Unmanned Systems Division, comprised of Kratos Unmanned Aerial Systems, Inc. (KUAS) and Micro Systems, Inc. (MSI):

• KUAS, located in Sacramento, CA, will lead the effort and provide high performance aerial target drones and technical support.
• MSI, located in Ft. Walton Beach, FL, will supply the majority of the high performance avionics utilized on the target drone to include critical command / control and flight computer systems.

Kratos target drone systems are used by U.S. and allied militaries around the globe as high fidelity enemy threat surrogates, simulating performance characteristics of certain threat aircraft and missiles, for weapons testing, development, and training requirements. Kratos is a leading provider of high performance unmanned aerial drone and target systems, unmanned aerial, ground and sea platforms, command, control, avionics control, and termination systems.

Steve Fendley, President of Kratos Unmanned Systems Division, said, “With our business now heavily weighted in rate production of several models of our jet drone aircraft, the AFSAT BQM-167A begins its 15th production lot. This milestone represents an exciting achievement for the company as the BQM-167A provided the original business foundation for our now, many systems across our unmanned jet target and tactical portfolio. Kratos is proud to provide the United States Air Force the highest performance Unmanned Aerial Target Drones in the world for their Mission Critical Requirements. Our USAF customer is one of our most demanding, and we are honored to be the provider of these mission critical systems. We look forward to continuing to evolve the BQM-167A for the ever evolving threats and supporting the USAF well into the future.”