Naval Air Systems Command Awards Kratos Sole Source $29.2M Initial Contract for FRP (Lot 1) of the 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 Kratos has received an initial $29,221,165 Full Rate Production (FRP) contract for Lot 1 of the BQM-177A Subsonic Aerial Target (SSAT) from the U.S. Navy for the procurement of 35 targets aircraft and technical data.

Steve Fendley, President of Kratos Unmanned Systems Division, said, “This FRP 1 award, coupled with the site activation efforts we are undertaking around the globe in support of the U.S. Navy, in spite of the significant challenges posed by the current pandemic, represents a huge stride forward towards achievement of Full Operational Capability for the BQM-177A SSAT within the coming fiscal year. Kratos is immensely proud of our role as the sole-source provider of this high-performance unmanned aerial system emulating the most advanced cruise missile threats posed by potential adversaries. We look forward to providing this revolutionary and evolutionary capability to the U.S. Navy and its allied and coalition partners for the next several decades, with this program and platform expected to be one of our most important and fastest growing.”

The work under this contract will be primarily conducted in Kratos facilities in Sacramento, CA, and Ft. Walton Beach, FL. Total contract value if the options for Lots 2 and 3 are both exercised at the maximum production quantities is $130,133,795.

Source: Kratos Defense & Security Solutions
Date: Oct 5, 2020