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Sunday, Feb 25, 2024

$50.9M Target Drone Contract Goes to Kratos Defense

The U.S. Navy awarded Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) a $50.9 million contract modification to a previously awarded firm-fixed-price contract. This modification exercises an option to procure 65 BQM-177A Subsonic Aerial Targets, 50 for the Navy, seven for the government of Japan, and eight for the government of Saudi Arabia, as well as associated technical and administrative data in support of full rate production Lot 3.


“The Kratos team is incredibly proud to receive this third consecutive full rate production option award supporting our U.S. Navy customer,” said Steve Fendley, president of Kratos Unmanned Systems Division. “We are also excited that 15 of these drone aircraft will support the U.S. government’s foreign allies. Throughout the challenges of the last two years, Kratos has remained focused on developing, producing and delivering target and tactical drone systems to support the established and forecasted customer needs.”

Approximately half of the work will be performed in Sacramento, where Kratos manufactures the drones. Work is expected to be completed by February 2024.

Two of the drones will replace two targets expended by the government of Australia.

Kratos has its headquarters in Scripps Ranch. It got into the unmanned aircraft business in 2012 when it bought Composite Engineering Inc., a Sacramento builder of target drones. Since then Kratos has opened a second unmanned aircraft factory in Oklahoma.

The Naval Air Systems Command at Patuxent River, Maryland awarded the contract, announced on Dec. 23.

Tac Air Ops Teaches Parachute Skills

The U.S. Navy awarded Tac Air Ops LLC of Jamul an $8.5 million contract for naval parachute course training and training support. Funds for labor, material, equipment, maintenance, transportation, training and support services necessary to deliver static line and military freefall parachute training courses of instruction are being obligated at the time of award. The majority of the work will be performed in and around San Diego. This contract is a sole source award because the government determined there is only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Special Warfare Command of Coronado awarded the deal, announced on Dec. 20.

Maintenance Pact for TK Elevator

The U.S. Navy awarded TK Elevator Corp. of El Cajon an indefinite-delivery/indefinite-quantity contract for vertical transport equipment maintenance services for Navy and Marine Corps installations in the San Diego area. The contract ceiling is $23.6 million. The contract covers 66 months, with an expected completion date of April 2027. Under the deal, the contractor will provide labor, supervision, management, equipment and materials to perform various maintenance services. An initial task order worth $3.6 million has been awarded. Work under this task order is expected to be completed by November 2022. This contract was competitively procured via the beta.sam.gov website with two proposals received. The Naval Facilities Engineering Systems Command Southwest in San Diego awarded the contract, announced on Oct. 25.


Leonardo to Support HVAC, Refrigeration

The U.S. Navy awarded DRS Marlo Coil of High Ridge, Missouri — which is a unit of defense contractor Leonardo DRS — an indefinite-delivery/indefinite-quantity contract for engineering and technical services in support of DRS Marlo-manufactured heating, ventilation, air conditioning and refrigeration equipment. DRS Marlo serves industrial, commercial, utility and marine markets.

The overall deal has a ceiling of $8.9 million. Some 20% of the work, valued at up to $1.8 million, will be performed in San Diego. Work is expected to be completed by December 2026. The contract was not procured competitively because the government has determined that there is only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Philadelphia Division awarded the deal on Dec. 22. It was announced Dec. 23.


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