BQM-177A FY26 Mission Kits Parts Procurement

The Naval Air Systems Command’s Aerial Targets Program Office awarded a sole-source, Firm-Fixed-Price delivery order valued at $2,996,035 to Kratos Unmanned Aerial Systems, Inc. for the procurement of Fiscal Year 2026 spares and mission kits to support the BQM-177A Subsonic Aerial Target System. This action was taken under the existing Basic Ordering Agreement N00019-22-G-0004, with the delivery order identified as N0001926F1000. The award was justified under Title 10 U.S.C. 3204(a)(1), implemented through FAR 6.102-1, because Kratos is the sole designer, developer, and manufacturer of the BQM-177A system, possessing exclusive rights to proprietary technical data, software, mission kits, special tooling, and support equipment necessary to sustain the program. No other source can meet the Government’s requirements due to the unique integration, maintenance, and repair knowledge held solely by Kratos, as confirmed by prior justifications including CJ&A 21-0072 and historical documentation from 2016, 2018, and 2019. Performance and delivery are to occur at Kratos’s facility in Sacramento, California, while oversight and acceptance are managed by NAVAIR’s PMA-208 office in Patuxent River, Maryland. The broader five-year Basic Ordering Agreement extends through Q4 FY26, with Full Rate Production Lot 4–7 deliveries continuing into FY27, supporting up to 280 targets and encompassing software sustainment, engineering change proposals, cybersecurity, repair services, and support for U.S. Navy and Foreign Military Sales customers. The contract relies on proprietary technical data not acquired by the Government due to prohibitive costs, eliminating competitive options. No set-aside was used, the NAICS code is 336411 for Aircraft Manufacturing, and the award decision did not require competitive evaluation, cost negotiations, or weighted factors, as the legal authority for sole-source acquisition fully applies. Packaging, preservation, marking, and specific MIL-STD requirements are not detailed in the available documentation, though standard DoD logistics practices are implied. The procurement is funded through OSD-22 budget profiles and may utilize Other Customer Funds or Foreign Military Sales channels, with