MARLBOROUGH, MA - On Dec. 9, 2025, Raytheon Missiles & Defense received a $19,981,684 firm-fixed-price contract modification to supply additional AEGIS solid-state switch assembly modification kits, along with onboard spares, for U.S. Navy guided-missile destroyers. Work will take place across four locations in Massachusetts and Virginia - with completion expected by September 2029. The Navy will obligate Fiscal 2026 other procurement funds at the time of award, which will remain available through the fiscal year. The contracting authority is Naval Sea Systems Command, Washington, D.C.

Source: Department of War
Associated URL: https://www.war.gov/News/Contracts/Contract/Article/4357707/

WASHINGTON - A final version of the FY26 National Defense Authorization Act (NDAA) was released on Monday. The House passed the bill Wednesday by a vote of 312-112, with 94 Democrats and 18 Republicans voting against the bill. The Senate is expected to vote on the bill next week

The bill adds $8 billion for national security in FY26, bringing the topline to $900.6 billion, a figure that includes defense-related spending outside of the Pentagon. The portion of the budget specifically for the Pentagon totals $855.7 billion, which is $7.5 billion higher than the $848.2 billion in base budget funding requested by the administration.

Lawmakers added $12.7 billion for developing and buying new military equipment. The bill provides $161.7 billion for procurement, reflecting an increase of $8.9 billion above the request. The legislation also includes $145.7 billion for research and development, which is $3.7 billion more than requested. Those plus-ups are partially offset by a $4.1 billion cut to operation & maintenance and a $1.5 billion cut for personnel.

Previous House and Senate markups from earlier in the year differed significantly to their approach to the defense budget. The House wanted to keep funding in line with the request, while the Senate recommended adding over $30 billion to the budget. Conference negotiations did result in a larger budget, but the topline fell well short of the Senate's original proposal, which would have added $18.2 billion for procurement and $8.5 billion for research and development.

While the NDAA includes recommended funding levels, congressional appropriators have the final say on how much funding the Pentagon will receive. The government is currently operating under a continuing resolution (CR) through January. It remains to be seen if lawmakers will come to an agreement on FY26 appropriations in time, or if the government will face another CR or even a second shutdown.

Meanwhile, the NDAA addresses concerns about the administration's cooling relationship with Europe, limiting troop withdrawals from the continent and providing $400 million for the Ukraine Security Assistance Initiative. The bill also places limits on troop withdrawal from South Korea.

House and Senate Armed Services Committee leaders released the following joint statement:

"We’re pleased to announce that the House and Senate Armed Services Committees have reached a bipartisan, bicameral agreement on the FY26 NDAA that supports our servicemembers and strengthens our national defense. We’ve worked together to deliver the most significant acquisition reforms in a generation-cutting red tape, accelerating decision-making, and improving our ability to get modern capabilities into the hands of our troops on time and on budget.

"We urge our colleagues to pass the FY26 NDAA quickly so these vital reforms can begin delivering results for our men and women in uniform."

Source: Forecast International
Associated URL: https://armedservices.house.gov/news/documentsingle.aspx?DocumentID=6359
Author: s. mcDougall, Defense Analyst 

HUDSON, N.H. - The U.S. Navy has issued BAE Systems a five-year indefinite-delivery/indefinite-quantity (IDIQ) contract for Advanced Precision Kill Weapon System (APKWS) laser-guidance kits, a deal with a ceiling value of $1.7 billion. The contract includes an initial $322 million order.

The award provides the Navy and other U.S. armed services with tens of thousands of additional low-cost precision-guided munitions. The kits, which convert standard 2.75-inch unguided rockets into laser-guided rounds, remain in high demand for both U.S. and international customers. The new agreement allows procurement across the services and enables allied purchases through foreign military sales channels.

APKWS kits are used from a wide range of platforms - including rotary-wing aircraft, fixed-wing aircraft, unmanned systems, ground launchers, and maritime vessels - and support air-to-surface, surface-to-surface, and limited air-to-air missions. The system is compatible with existing rocket motors and warheads, requires minimal operator training, and offers a lower-cost alternative to larger precision weapons.

BAE Systems produces the kits at its facilities in Hudson, New Hampshire, and Austin, Texas. The company has been in full-rate production of APKWS for more than a decade.

The Navy’s decision underscores continued demand for affordable precision munitions at a time when U.S. and allied forces face expanding operational requirements and high expenditure rates. APKWS provides a scalable option between unguided rockets and more expensive guided missiles, helping address stockpile pressures and enabling more frequent precision engagements without the cost of larger weapons. The contract also reinforces the system’s role as a globally adopted, multi-platform precision-strike solution.

Source: Forecast International
Associated URL: www.baesystems.com