US Strikes Deal With BAE Systems to Ramp Up Weapons Production

The US Department of War has reached a framework agreement with defence contractor BAE Systems to increase production of a precision-guided rocket system, with plans to procure up to 25,000 guidance sections annually for as long as seven years.

The proposed procurement is subject to congressional authorisation and funding. The agreement is intended to provide sustained demand for the Advanced Precision Kill Weapon System (APKWS), enabling BAE Systems to secure components, expand its workforce and increase manufacturing capacity.

The framework also sets out a pathway to raise annual production to as many as 35,000 units for international allies, depending on orders from partner countries through the US Foreign Military Sales programme.

Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment, said the agreement would help maintain production capacity, build interceptor inventories for US forces and improve value for taxpayers by securing longer-term demand.

The APKWS guidance system converts unguided rockets into precision-guided munitions. The department described it as a combat-proven system used to counter aerial threats.

The agreement was developed in partnership with the US Army, Navy, Air Force and Marine Corps. The department said expanding production would strengthen the domestic defence industrial base and preserve manufacturing lines that could be ramped up quickly when demand rises.

Source: FSX Business News