The Department of War announced today that it has reached a framework agreement with BAE Systems to ramp up production of the combat-proven Advanced Precision Kill Weapon System (APKWS). The multi-year agreement outlines the procurement of up to 25,000 APKWS guidance sections annually for up to seven years, pending congressional authorization and appropriations.
"The Arsenal of Freedom exists for one purpose: to guarantee our warfighters decisive advantage on the battlefield," said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment. "By securing multi-year demand, this agreement keeps production lines running at capacity, provides our forces with interceptor inventory, and flips the cost calculus in the taxpayer's favor."
The agreement locks production over previous contracts, establishing the sustained demand signal BAE Systems needs to procure long-lead items and expand its skilled workforce. APKWS delivers a combat-proven, high-lethality interceptor while countering widespread aerial threats.
Beyond the baseline of 25,000 units per year, the framework establishes an actionable pathway to surge output up to 35,000 units annually for international allies. This industrial expansion will be unlocked as partner nations formalize orders via Foreign Military Sales Letters of Request.
By leveraging allied demand to capitalize new domestic production lines, the Department strengthens the nation's industrial base. Each active line directly expands sovereign U.S. surge capacity, preserving warm, high-rate manufacturing infrastructure ready to respond on short notice.
The agreement was finalized in partnership across the U.S. Army, Navy, Air Force, and Marine Corps.
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