Benzinga | Sep 13, 2021 12:16PM EDT

Kratos Secures $338M Sole Source Contract From US Air Force For Target Drones

* Kratos Defense & Security Solutions, Inc's (NASDAQ:KTOS) Kratos Unmanned Aerial Systems has secured a $338.07 million Firm Fixed-Price, Cost-Plus-Fixed-Fee, and Time-and-Material contract for BQM-167A Air Force Subscale Aerial Target (AFSAT) lots 17-21 production, out-of-warranty-repairs (OWR), and contractor logistics support (CLS).

* Work will be performed at a Kratos manufacturing facility. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity.

* "This five-year contract represents a milestone in our target system business and reduces the administrative burden on both the USAF and Kratos by enabling multiple years of target delivery and support to be combined into a single contract -- smart and efficient business," said Steve Fendley, President of Kratos Unmanned Systems Division.

* Price Action: KTOS shares are trading higher by 1.28% at $22.99 on the last check Monday.