BAE Systems has been awarded a five-year contract by the US Navy to continue producing its Advanced Precision Kill Weapon System (APKWS) laser-guidance kits for American and allied forces.

The agreement begins with an initial $322-million order covering “tens of thousands” of low-cost precision munitions and could reach a total value of $1.7 billion if all options are exercised.

APKWS has been in full-rate production for over 12 years, with manufacturing taking place at BAE’s facilities in Hudson, New Hampshire, and Austin, Texas.

The guidance kits transform standard 2.75-inch (70-millimeter) rockets into laser-guided munitions capable of precise strikes against soft or lightly armored ground and air targets.

Designed for affordability and ease of use, the kits require minimal training and lower sustainment costs compared to conventional precision weapons.

They can be integrated with both legacy and modern rocket motors, warheads, and fuzes, and are compatible with a wide variety of platforms, including helicopters, fixed-wing aircraft, drones, ground vehicles, and naval systems.

This year, the weapon was successfully test-fired from a multi-rotor drone and a modified F-15E Strike Eagle.

BAE is also evaluating the possibility of integrating APKWS onto the Eurofighter Typhoon as a counter-drone solution.

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