The Department of War announced on Monday a framework agreement with BAE Systems covering procurement of up to 25,000 Advanced Precision Kill Weapon System guidance sections a year for up to seven years, pending congressional authorization and appropriations. The framework also sets out a path to surge output to 35,000 kits a year for international allies, unlocked as partner nations formalize orders through the Foreign Military Sales program. APKWS kits convert unguided 2.75-inch rockets into laser-guided munitions fielded by all four services, and Defense News reported BAE will increase production while the two sides work out a multiyear contract, with no deal value announced.
Pentagon signs BAE framework for 25,000 precision kits yearly
The Department of War said on Monday it has signed a framework agreement with BAE Systems to buy up to 25,000 APKWS guidance kits a year for up to seven years, pending congressional authorization and funding.
Why it matters: APKWS kits turn unguided rockets into laser-guided munitions and have become a cheaper counter-drone interceptor, so a seven-year demand signal lets BAE expand production lines in New Hampshire and Texas and hold surge capacity for allies.
Data as of Department of War release of October 19, 2026, read in full (primary source), corroborated by Defense News reporting of the same day. No contract value was announced and the buy still requires congressional authorization and appropriations. Developing item.
Sources
- Department of War and BAE Systems Sign Framework Agreement to Surge Counter-Drone Production to 25,000 Precision Interceptors Annually · US Department of War · 2026-10-19
- Pentagon, BAE sign deal for up to 25,000 precision-guided munition kits a year · Defense News · 2026-10-19