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BQM-177A Subsonic Aerial Target

Kratos Secures Potential $130M Navy Aerial Target Production Contract

Kratos Defense and Security Solutions (Nasdaq: KTOS) will initially manufacture 35 subsonic aerial target systems for the U.S. Navy as part of a potential $130.1M full-rate production contract.

The military service placed an initial $29.2M order for the first batch of BQM-177A SSATs along with the technical data package, Kratos said Monday.

The Navy could procure additional target drones by exercising the contract's lot 2 and 3 FRP options. Work will take place at contractor facilities in Fort Walton Beach, Florida, and Sacramento, California.

BQM-177A, which reached initial operational capability status in February 2019, is designed to mimic anti-ship cruise missile threats at sea and fly at a speed of over 0.9 mach.

Steve Fendley, president of Kratos' unmanned systems division, said the FRP 1 award and site activation work currently underway mark key steps toward declaration of full operational capability for the program this fiscal year.

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