U.S. Navy buys BQM-177 subsonic target drone

On December 23, 2021, the U.S. Naval Air Systems Command, Patuxent River, MD awarded Kratos Unmanned Aerial Systems Inc., Sacramento, CA a lump sum $50,917,490 contract amendment for procurement of BQM-177 subsonic target drone

This contract amendment exercises an option to procure 50, seven, and eight BQM-177A subsonic target drones for the U.S. Navy, seven for the Government of Japan, and eight for the Government of Saudi Arabia, respectively, along with related technical and management data to support full-rate production of the third Production lot (Lot 3). Party B will be in Sacramento (55.41%), Dallas, Texas (17.36%), Fort Walton Beach, Florida (4.67%), Blacksburg, Pennsylvania (2.9%), Newton, Kansas (2.11%), Santa Ana, California (2.03%) and Concord (1.94%), Milwaukee, Oregon (1.83%), and Chatsworth, Calif. (1.48%). Grable, Wyoming (1.17%) and various other sites in the continental United States (9.1%) are performing work under the contract, which is expected to be completed by February 2024. When awarding the contract, the U.S. Navy will allocate $37,600,608 from the FY 2022 weapons procurement budget and $1,566,692 from the FY 2021 weapons procurement budget (replacing the Australian government’s purchase of 2 foreign military sales from the U.S. Navy Expenditures for weapons procurement), and US$11,750,190 was allocated from foreign military sales. None of the funds will expire at the end of fiscal 2022.