Naval Air Systems Command Accepts Delivery of 100th Production BQM-177A SSAT System

Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leading National Security Solutions provider and industry-leading provider of high-performance, jet-powered unmanned aerial systems, announced today that it has delivered the 100th production BQM-177A Subsonic Aerial Target (SSAT), nearing completion of its third and final Low Rate Initial Production (LRIP) contract.

Captain Molly Boron, Program Manager, Aerial Targets Program (PMA-208) stated, “I am proud to accept delivery of this 100th aircraft on behalf of the U.S. Navy. The government-industry team of PMA-208 and Kratos Unmanned Aerial Systems (KUAS) has worked hard to deliver this capable target on time and on budget. 2020 has been a successful year despite COVID-19 challenges. We are completing LRIP III deliveries, have awarded the $29.2M Full Rate Production (FRP) Lot 1 contract on 29 September for 35 more BQM-177A SSATs, and are currently activating the operational site at Pacific Missile Range Facility (PMRF) in Kauai, HI. The combined PMA-208 and KUAS team is positioned to successfully achieve Full Operational Capability this fiscal year. We are delivering targets and support equipment to Atlantic Target & Marine Operations at Dam Neck, VA in anticipation of their transition to the BQM-177A this winter. We will complete the transition of this capability when the PMRF Detachment Far East site in Okinawa, Japan is activated with a ship-launch capability. The delivery of the 100th target signifies a well-performing production line but also represents an incredible amount of teamwork enabling relevant anti-ship cruise missile training and combat system testing for the Fleet.”

Steve Fendley, President of Kratos Unmanned Systems Division, said, “The delivery of this 100th aircraft represents the very hard work of many dedicated Navy and KUAS engineering, production, program, logistics, financial, and supply chain professionals. We stand shoulder-to-shoulder with our Navy customers as we activate additional sites and operationalize this capability around the world. The KUAS team remains committed to the mission of providing the most capable systems and realistic training possible to the warfighters.”