Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) announced on July 19 that it received a U.S. Air Force contract covering three lots of its BQM-167A high-performance, jet-powered unmanned aerial target drone systems.

The contract consists of a base year and two option years, with a maximum value of $109 million. The deal includes contractor logistics support.

Fiscal year 2018 procurement funds of $27 million are being initially obligated for 30 target drones and production support, Kratos said in its announcement.

San Diego-based Kratos produces its target drones in the Sacramento area.

The Air Force uses the BQM-167A drone to test and evaluate air-to-air and surface-to-air weapons systems.