BAE Systems Secures $1.7 Billion Contract for Advanced Precision Kill Weapon System II (APKWS)
Teh U.S. Department of Defense recently awarded BAE Systems Data and Electronic Warfare Systems a significant $1.7 billion contract for the production and delivery of the Advanced Precision Kill Weapon System II (APKWS) rounds. This important investment underscores the growing demand for cost-effective, precision-guided munitions across the U.S. military and among international partners. But what makes the APKWS such a critical asset, and what does this contract mean for the future of precision warfare?
Contract details & Production Timeline
The contract, announced by the Pentagon on August 29, 2025, authorizes the production of up to 55,000 APKWS units across Full Rate Production Lots 13 through 17. Deliveries will directly support the U.S. Navy,U.S. Army, and a diverse range of Foreign Military Sales (FMS) customers.
Production will be a collaborative effort, spanning multiple facilities across the United States, the United Kingdom, and Canada. Key production hubs include:
hudson, New Hampshire (31%): BAE Systems’ primary facility. Whippany, New Jersey (22%): A significant contributor to the manufacturing process.
Plymouth, United Kingdom (16%): Demonstrating the international scope of the program.
Additional manufacturing and component work will be distributed across sites in Austin, Texas; Bristol, Pennsylvania; Rochester, New York; Kitchener, Ontario; Westminster, Maryland; Ronan, Montana; Topsfield, Massachusetts; Pomfret, Connecticut; Danbury, Connecticut; Anaheim, California; Tempe, Arizona; Ipswich, Massachusetts; centennial, Colorado; Carson, California; and Boston, Massachusetts. The contract is slated for completion by December 2031, ensuring a sustained supply of these vital munitions for years to come. The Naval Air Systems Command at Patuxent River, Maryland, is overseeing the contract, with funding allocated on a per-order basis. Notably, the contract was awarded on a sole-source basis, highlighting BAE Systems’ established expertise and the APKWS’s unique capabilities.
APKWS: Transforming Unguided Rockets into Precision Weapons
Developed through a collaborative effort between BAE Systems, Northrop Grumman, and General Dynamics, the APKWS represents a revolutionary advancement in precision strike technology. The system ingeniously transforms the widely-used, unguided 2.75-inch Hydra 70 mm rocket into a highly accurate, semi-active laser-guided munition.This change is achieved through the addition of a relatively simple and cost-effective laser guidance kit. This kit allows the rocket to lock onto a designated laser spot, dramatically increasing its accuracy and reducing the risk of collateral damage.The beauty of the APKWS lies in its ability to leverage existing Hydra rocket infrastructure, minimizing the need for extensive and costly re-tooling or replacement of existing weapon systems.
Why is APKWS Gaining Traction? – Cost, Capability, and Collateral Damage Mitigation
The APKWS is rapidly becoming a preferred weapon system for a multitude of reasons:
Cost-Effectiveness: The APKWS is approximately one-third the cost of conventional laser-guided weapons, making it an incredibly attractive option for both large-scale deployments and specialized operations.
Lightweight Design: Weighing significantly less than other precision-guided munitions, the APKWS allows for increased payload capacity and extended operational range.
Reduced Collateral Damage: The APKWS delivers a lower explosive yield compared to many other precision weapons. This characteristic is especially crucial in complex environments where minimizing unintended harm to civilians and infrastructure is paramount.
Rapid Loading & Unloading: Ordnance personnel can load and unload APKWS rounds in one-quarter of the time required for other precision weapons, significantly accelerating deployment and response times.
versatile Platform Compatibility: The APKWS is compatible with a wide array of platforms, including fixed-wing aircraft, helicopters, and increasingly, unmanned aerial vehicles (UAVs). This adaptability makes it a valuable asset across diverse operational scenarios.
The Strategic Implications of the Contract
This $1.7 billion contract signifies a continued commitment to enhancing precision strike capabilities while prioritizing cost-effectiveness and minimizing collateral damage. The APKWS allows militaries to significantly improve their targeting accuracy without requiring a complete overhaul of existing weapon systems.
The growing adoption of the APKWS by both U.S. forces and allied nations demonstrates its effectiveness and versatility. As the threat landscape evolves, the demand for precision-guided munitions like the APK









