- The U.S. Air Force approved a $145 million effort to develop an Air-to-Air Dual Mode APKWS weapon to counter Group 3 unmanned aerial system threats.
- The program will produce 300 prototype rounds with infrared seeker upgrades under a Joint Urgent Operational Need for rapid fielding within 24 months.
The United States Air Force has released details of a $145 million contract action to develop and integrate an Air-to-Air Dual Mode weapon based on the Advanced Precision Kill Weapon System (APKWS) designed to counter large groups of unmanned aerial systems, according to an official Justification and Approval document published February 13, 2026.
The approval authorizes acquisition of upgraded components for the AGR-20F APKWS rocket, also known as FALCO, under a Joint Urgent Operational Need (JUON) designated CC-0588 by combatant commanders. The effort focuses on creating prototype air-to-air rounds equipped with a nose-mounted Long Wave Infrared (LWIR) seeker, a mid-body warhead, and a dual safe proximity fuze tailored to defeat Group 3 unmanned aerial system threats.
According to the document, the upgraded configuration enables a hand-off from laser designation to an infrared seeker, reducing the time aircraft operators must maintain laser contact with a target. The Air Force stated that the modification minimizes exposure during engagements while allowing faster targeting cycles against multiple airborne threats. The new subcomponents are designed to remain compatible with the existing APKWS interface developed by BAE Systems.
The contract action is structured as an Indefinite Delivery/Indefinite Quantity agreement expected to be awarded on a sole-source basis to BAE Systems in Hudson, New Hampshire. Work is required to begin no later than the second quarter of fiscal year 2026 in order to meet operational timelines established by U.S. Central Command and Air Force Central Command under the urgent requirement.
Program documentation states that government personnel will assemble 300 prototype All-Up Rounds using newly developed components delivered under the contract. Of these, 100 rounds will support integration and qualification testing, while 200 are intended as operational test assets deployed for evaluation in operational environments. The prototypes are intended to provide an initial capability within a 24-month timeframe.
The Air-to-Air Dual Mode system builds upon the APKWS precision-guided rocket, a low-cost munition already fielded across multiple U.S. aircraft. The upgraded configuration introduces infrared tracking alongside laser guidance, enabling target engagement after laser designation without continuous illumination. Integration testing is planned on the F-16 platform to validate airworthiness and operational performance requirements.
As outlined in the approval, combatant commanders issued the Joint Urgent Operational Need in August 2024 after identifying growing risks posed by mass attacks involving lower-cost Group 3 drones, potentially numbering in the hundreds. The requirement calls for a lower-cost air-to-air solution deployable in large quantities to counter swarm threats without relying solely on higher-priced missile systems.
Air Force acquisition officials determined that BAE Systems represents the only responsible source capable of delivering the required upgrades within the mandated timeline. Market research conducted through a Request for Information received 43 industry responses, but officials concluded alternative proposals could not meet airworthiness standards, aircraft integration requirements, or the required 24-month delivery schedule. Awarding the effort to another vendor was assessed as creating delays exceeding 44 months.
The acquisition allocates approximately $62 million for component development, $56 million for testing and qualification of operational units, and $27 million for technical risk reduction and U.S. Navy certification activities. The program also seeks expanded government technical data rights to enable future integration of alternative components and support eventual competitive procurement options.
Officials noted that the Dual Mode effort leverages earlier operational experience from the FALCO program, emphasizing rapid integration and production readiness.
The program includes a 24-month development and integration phase followed by a 60-month ordering window intended to transition the capability toward production-ready status.