FALLS CHURCH, Va. - BAE Systems has signed a framework agreement with the U.S. Department of Defense (DoD) to support procurement of up to 25,000 Advanced Precision Kill Weapon System (APKWS) guidance sections annually for up to seven years, with a pathway to increase production to 35,000 units per year to meet allied demand.
The agreement remains subject to congressional authorization and appropriations. BAE Systems will expand production while negotiating a multiyear procurement contract under the framework. The companies did not disclose a total contract value.
APKWS converts unguided 2.75-inch (70-millimeter) rockets into precision-guided munitions by adding a laser-guidance section between the rocket motor and warhead. The modular design retains existing rocket components and interfaces, allowing the guidance kit to be integrated with multiple rocket motors, warheads, and fuzes.
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The guidance section uses Distributed Aperture Semi-Active Laser Seeker (DASALS) optics mounted on four deployable wings. The optics detect laser energy reflected from a designated target, allowing the rocket to adjust its flight path toward it. BAE says the system has a 40-degree instantaneous field of regard and can acquire designated targets at distances exceeding 6 kilometers.
Originally developed for precision air-to-ground strikes, APKWS also supports surface-to-surface, surface-to-air and air-to-air engagements. Counter-uncrewed aircraft systems applications include engaging aerial drones and low-flying cruise missiles. The U.S. Air Force, Army, Marine Corps, and Navy field the guidance kits, which can be launched from multiple fixed-wing and rotary-wing aircraft, as well as adapted ground-based and maritime platforms.
Under the framework, the stated U.S. procurement level is up to 25,000 guidance sections annually. Production could increase to 35,000 units per year as international partners formalize demand through the Foreign Military Sales process. The agreement is intended to provide the sustained demand needed to procure long-lead materials, expand the skilled workforce and increase manufacturing capacity.
BAE Systems delivered its 100,000th APKWS guidance kit in February 2026, marking more than a decade of full-rate production. The company manufactures the kits in Hudson, N.H., and Austin, Texas.
