Kratos Defense & Security Solutions Inc. reported on Dec. 18 that its Unmanned Systems Division received a contract that could be worth as much as $27 million.
Kratos (Nasdaq: KTOS) revealed few details of the contract, saying only that it was providing unmanned drone systems to a U.S. government agency. The contract is an indefinite quantity, indefinite delivery deal, and may ultimately be worth less than the $27 million ceiling.
The Unmanned Systems Division specializes in jet-powered drones. The division “continues to successfully execute its business plan as demonstrated by this most recent contract award, and with our recent participation in Formidable Shield ’17, where a number of Kratos unmanned target drone and ballistic missile targets performed successfully,” Eric DeMarco, Kratos’ CEO, said in a statement distributed by the company.
“Additionally, USD remains in pursuit of several other large program opportunities which we are hopeful of receiving over the next several weeks.”
Formidable Shield was an exercise involving 10 NATO countries that lasted several weeks in September and October, according to military publisher HIS Jane’s. During the war games, a Standard Missile-3 launched from a U.S. Navy destroyer intercepted a Terrier Oriole medium-range ballistic missile target vehicle above the Earth’s atmosphere. The destroyer, the USS Donald Cook, is equipped with the Aegis weapon system.
Separately, the U.S. Defense Department reported on Dec. 18 that it awarded Kratos an $11.1 million, firm fixed-price modification to a contract to buy additional Oriole rocket motors and hardware to go into Aegis readiness assessment vehicles. Work will last through early 2020, and will be split between Rocket Center, West Virginia, and Glen Burnie, Maryland. Some foreign military sales funds will go toward the purchase. The Naval Surface Warfare Center’s Port Hueneme Division awarded the contract.