Kratos Receives Sole Source, Single Award $109 Million Maximum Value Three Year Production Contract for Air Force Subscale Ae...
19 July 2018 - 6:00PM
Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a
leading National Security Solutions provider, announced today that
it has negotiated and received an early effective date of 29 June
2018 for a one year sole source, single award, firm fixed price
contract for Kratos’ BQM-167A high performance, jet powered
unmanned aerial target drone system. The contract includes two one
year options for additional production lots. This contract award
represents AFSAT Lots 14-16 (corresponding to over 16 years of
production) and Contractor Logistics Support, with a possible
maximum value of approximately $109 million. Work will be performed
at a Kratos manufacturing facility. Fiscal year 2018
procurement funds in the amount of $27 million are being initially
obligated at the time of award for thirty Lot 14 BQM-167A aerial
targets and production support. Air Force Life Cycle
Management Center, Eglin Air Force Base, Florida, is the
contracting activity. Kratos is the industry leading supplier
of affordable, high performance unmanned aerial target drone
systems to all branches of the U.S. military, and many nations
around the world. Kratos is also a leading provider of
affordable, high performance jet powered unmanned aerial drone
systems for tactical applications and mission sets.
The BQM-167A is used by the United States Air
Force (USAF) to test and evaluate air-to-air and surface-to-air
weapons systems. The primary role of the BQM-167A is to provide
USAF aviators with the world’s most realistic and comprehensive
end-to-end weapons-release evaluation and training. The versatile
design of AFSAT supports an extensive range of mission requirements
through its performance capabilities and wide array of payloads,
which are contracted and procured separately.
Steve Fendley, President Unmanned Systems
Division of Kratos, said, “We’re thrilled about this most recent
long-term contract to continue supporting our USAF customer with
unparalleled subscale unmanned aerial target drone performance. The
USAF is an extremely important customer to Kratos and we value the
importance of the AFSAT system and in continuing to respond to the
rapidly growing training and testing needs of the USAF.”
Eric DeMarco, CEO of Kratos, said, “The receipt
of this sole source contract for AFSAT production Lots 14 through
16 is a clear example of Kratos’ strategy and business plan to
rapidly develop, demonstrate and field affordable, leading
technology platforms and systems which meet or exceed our customer
requirements, which result in long term partnership relationships.
Kratos’ unmanned aerial target drone systems, including the
BQM-167A, are the highest performance unmanned aerial systems in
their class in the world, and are expected to be significant future
revenue, profit and cash flow growth drivers for our Company.”
About Kratos Defense & Security
SolutionsKratos Defense & Security Solutions,
Inc. (NASDAQ:KTOS) develops and fields transformative,
affordable technology, platforms and systems for United States
National Security related customers, allies and commercial
enterprises. Kratos is changing the way breakthrough
technology for these industries are rapidly brought to market
through proven commercial and venture capital backed approaches,
including proactive research and streamlined development
processes. Kratos specializes in unmanned systems,
satellite communications, cyber security/warfare, microwave
electronics, missile defense, hypersonic systems, training and
combat systems. For more information go to
www.kratosdefense.com.
Notice Regarding Forward-Looking
StatementsCertain statements in this press release may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made on the basis of the current
beliefs, expectations and assumptions of the management of Kratos
and are subject to significant risks and uncertainty. Investors are
cautioned not to place undue reliance on any such forward-looking
statements. All such forward-looking statements speak only as of
the date they are made, and Kratos undertakes no obligation to
update or revise these statements, whether as a result of new
information, future events or otherwise. Although Kratos believes
that the expectations reflected in these forward-looking statements
are reasonable, these statements involve many risks and
uncertainties that may cause actual results to differ materially
from what may be expressed or implied in these forward-looking
statements. For a further discussion of risks and uncertainties
that could cause actual results to differ from those expressed in
these forward-looking statements, as well as risks relating to the
business of Kratos in general, see the risk disclosures in the
Annual Report on Form 10-K of Kratos for the year ended December
31, 2017, and in subsequent reports on Forms 10-Q and 8-K and other
filings made with the SEC by Kratos.
Press Contact:Yolanda
White858-812-7302 Direct Investor
Information:877-934-4687investor@kratosdefense.com
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