Kratos books $109M Air Force target drone award

Kratos Defense and Security Solutions has received a potential $109 million contract to produce three batches of unmanned aerial target drones for the Air Force to use in weapons testing and training exercises.

The Air Force is obligating $27 million initially for the first lot of 30 BQM-167A drones and the contract includes a pair of one-year options for additional batches. This contract covers lots 14 through 16 that correspond to how many years Kratos has produced the target drones, the company said Thursday.

Nicknamed "Skeeter," Air Force aviators use the target drone in tests and evaluations of air-to-air and surface-to-air weapons.

Unmanned systems are one of four priority areas for Kratos as the company is seeking to bolster its footprint as a high-end defense technology manufacturer. Kratos is a subcontractor to Dynetics on the Defense Advanced Research Projects Agency's "Gremlins" program, which the team secured its role on in April over a rival General Atomics bid.

San Diego-based Kratos divested its public safety business in June to gain more focus on core defense markets. In April, Kratos was one of three companies the Army selected for the branch's $93 million "Aerial Target Systems 2" contract.