Navy Awards California Firm $37.1 Million Contract for Drones

Kratos Defense & Security Solutions Inc. received a big contract for jet-powered target drones, used in military war games. The U.S. Navy announced the $37.1 million contract modification on June 27.
Under the deal, Kratos’ aerospace subsidiary in Sacramento will build 45 BQM-177A subsonic aerial targets at low-rate initial production for $34.6 million.
Under a separate, $2.5 million portion of the deal, Kratos will supply 315 mission equipment installation kits, 30 radar altimeters, technical manuals, training materials and equipment as well as logistics support services.
Work will continue through April 2019.
San Diego-based Kratos said it expects separate contracts — covering peculiar support equipment, initial systems spares, external payload systems and flight consumables — to follow shortly.
It added that a second low-rate initial production order in fiscal 2018 should be 25 percent higher than its first low-rate initial production order.