Kratos Receives $50M Sole Source Contract Option Award for 65 Production BQM-177A Aerial Target Drones from US Navy

Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today following the Government announcement, that Kratos Unmanned Aerial Systems (KUAS) has been awarded a $50,917,490 contract modification (P00007) to a previously awarded firm-fixed-price contract (N0001920C0075). This modification exercises an option to procure 65 BQM-177A Subsonic Aerial Targets, 50 for the Navy, seven for the government of Japan, and eight for the government of Saudi Arabia, as well as associated technical and administrative data in support of full rate production lot three. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Due to customer-related, competitive, security, and other considerations, no additional information will be provided.

Steve Fendley, President of Kratos Unmanned Systems Division, said, “The Kratos team is incredibly proud to receive this third consecutive full rate production option award supporting our U.S. Navy customer. We are also excited that 15 of these drone aircraft will support the U.S. Government’s foreign allies. Throughout the challenges of the last two years, Kratos has remained focused on developing, producing, and delivering target and tactical drone systems to support the established and forecasted customer needs.”