# DoD and BAE Expand APKWS Production

The U.S. Department of Defense and BAE Systems signed a framework agreement on October 19, 2026, to support production of up to 25,000 Advanced Precision Kill Weapon System (APKWS) guidance kits annually for as long as seven years, with a potential increase to 35,000 kits per year if allied demand materializes through Foreign Military Sales. The framework provides production-demand visibility, but it is not a funded multiyear procurement contract: Congress must authorize and appropriate funding, and DoD and BAE are still negotiating the follow-on contract. No contract value, solicitation number, or open procurement opportunity has been announced. The continuing resolution runs through December 11, 2026, and may constrain new procurement starts in the interim.

- Suppliers in components, manufacturing equipment, testing, and workforce capacity may assess how their offerings align with BAE’s potential production ramp, while recognizing that demand and contract terms remain conditional.
- The agreement is not an active solicitation or a guaranteed order. Contractors should base near-term planning on the pending funding and follow-on contract negotiations rather than the projected annual production ceiling.
- Allied orders could support production growth beyond 25,000 kits annually, up to 35,000; companies supporting Foreign Military Sales supply chains may find this relevant as formal requests develop.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Contracting Vehicles, Grants & Funding
**Published:** October 20, 2026

### Government Entities
- U.S. Department of Defense (DoD)
- Congress
- U.S. Department of State (State Department)

### Vendors
- BAE Systems (Manufacturer and framework agreement counterparty)

### Sources
- [Pentagon, BAE sign deal for up to 25,000 precision-guided munition kits a year](https://www.defensenews.com/pentagon/2026/10/19/pentagon-bae-sign-deal-for-up-to-25000-precision-guided-munition-kits-a-year) - Defense News
- [BAE Agrees To Increase APKWS Production Under Multi-Year Framework With DoD - Defense Daily](https://www.defensedaily.com/bae-agrees-to-increase-apkws-production-under-multi-year-framework-with-dod/business-financial) - Defense Daily
- [BAE Systems and U.S. Department of Defense Sign Multi-Year Framework to Expand APKWS Production – SatNews](https://satnews.com/2026/10/19/bae-systems-and-u-s-department-of-defense-sign-multi-year-framework-to-expand-apkws-production) - SatNews Publishers