BAE Wins $145M Pentagon Counter-Drone Contract
BAE Systems has secured a $145 million indefinite-delivery/indefinite-quantity contract from the U.S. Department of Defense to develop and produce counter-unmanned aerial systems weapons designed to address evolving drone threats.
The contract, managed by the Air Force Life Cycle Management Center, includes an initial delivery order valued at $66.7 million. The agreement runs from February 2026 through February 2031, providing a multi-year framework for ongoing development and production activities.
Under the contract, BAE Systems will focus on adapting and enhancing rocket-based systems to counter small and medium-sized unmanned aerial systems. As drone technology becomes more accessible and increasingly sophisticated, military planners have prioritized scalable and cost-effective solutions capable of neutralizing aerial threats in a range of operational environments.
Work will be carried out at BAE’s facility in Hudson, New Hampshire, where the company has extensive experience in advanced munitions and precision-guided rocket systems. The effort is expected to leverage existing rocket technologies while integrating updated guidance, targeting and control capabilities tailored for counter-drone missions.
The Pentagon has identified counter-unmanned aerial systems as a critical defense priority, particularly as adversaries and non-state actors expand their use of drones for reconnaissance, surveillance and attack missions. Traditional air defense systems can be expensive relative to the low cost of many unmanned aircraft, prompting increased investment in adaptable and economically sustainable countermeasures.
An indefinite-delivery/indefinite-quantity structure allows the Defense Department to issue task or delivery orders as needs evolve, offering flexibility in funding and production levels over the life of the contract. The initial $66.7 million order will support early development and production milestones.
The award reflects the broader U.S. defense strategy of strengthening domestic industrial capabilities in emerging threat areas. By partnering with established defense contractors such as BAE Systems, the Pentagon aims to accelerate the deployment of counter-drone technologies that enhance force protection and safeguard critical infrastructure.
The contract underscores continued momentum in the counter-UAS sector as military agencies adapt to a rapidly changing threat landscape.
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Sources: AirGuide Business airguide.info, bing.com