June 28 (UPI) -- The U.S. Navy has awarded BAE Systems with a $224.3 million contract for improved Advanced Precision Kill Weapon Systems II, which turn unguided Hydra 70 rockets into precision, laser-guided munitions.
The contract, announced Wednesday by the Department of Defense, comes under the terms of a firm-fixed-price delivery order on indefinite/delivery/indefinite-quantity contract. It allows the company to produce an additional 10,185 APKWS rockets.
The procurement will upgrade the current unguided Hydra 70 2.75-inch rocket system to a semi-active laser-guided precision weapon in support of the Air Force, Army and foreign military sales customers.
In a press release, BAE Systems said the improvements redefine precision by hitting the target with pinpoint accuracy, which is critical for air-to-ground missions when you only have one shot.
Work will be preformed in Hudson, N.H., and Austin, Texas, and is expected to be completed in March 2019. Fiscal 2016 Special Defense Acquisition funds for the Navy, fiscal 2017 procurement ammunition funds from the Air Force and fiscal 2018 procurement ammunition and FMS funds from the Air Force and Army amounting to the full value of the contract were obligated to BAE at the time of the award.
Just over $17 million of that will expire at the end of the fiscal year, with the contract modification combining purchases for the Air Force, Army, Navy and FMS customers.