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BAE Systems logo. BAE Systems was awarded a U.S. Navy contract to produce Advanced Precision Kill Weapon System II.
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BAE Systems Secures $1.7B Navy Contract for Advanced Precision Kill Weapon System II

    Author: Miles Jamison || Date Published: August 29, 2025

    The U.S. Navy has awarded BAE Systems a $1.7 billion contract to deliver the Advanced Precision Kill Weapon System II. The indefinite-delivery/indefinite-quantity contract covers full rate production lots 13 through 17, the Department of Defense said Thursday.

    Advanced Precision Kill Weapon System II Contract Scope

    Under the firm-fixed-price contract, BAE Systems will manufacture a maximum of 55,000 units of APKWS II, which will transform the current 2.75-inch rocket system into a semi-active laser-guided precision weapon for use by the Navy, Army and foreign military sales customers.

    The Hudson, New Hampshire-based company will do most of the work in Hudson, New Hampshire; Whippany, New Jersey; and Plymouth, UK, while the rest will be performed in various U.S. locations and Ontario, Canada. Work is expected to be completed by December 2031.

    Previous Contract

    In September 2019, BAE Systems was awarded a potential six-year, $2.68 billion contract to manufacture lots 8 through lot 12 of APKWS II. The contract covered the production of APKWS units for the Navy, Air Force and Army, along with nine foreign military sales clients.

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