WASHINGTON — The U.S. Department of Defense has ordered another $52.3 million worth of L3Harris proximity fuzes that allow APKWS laser-guided rockets to be used against drones. The firm-fixed-price modification more than doubles the value of a contract awarded just four months earlier.
The U.S. Department of War announced the modification to a $48.5 million contract awarded in late May by the Naval Surface Warfare Center Indian Head Division to L3Harris Fuzing and Ordnance Systems. Work will take place in Cincinnati, Ohio, and is scheduled for completion by November 2027. The number of fuzes being purchased was not disclosed.
How the fuze works
L3Harris' Mechanical Proximity Fuze, also known as the FALCO fuze under the Fixed Wing, Air Launched, Counter-Unmanned Aircraft Systems Ordnance program, is designed to detonate a rocket's warhead when it detects a nearby target. This allows the rocket to destroy a small, fast-moving drone without requiring a direct hit.
The FALCO combines radio-frequency sensor electronics from Technology Service Corporation with an L3Harris safe-and-arm device. It is installed on BAE Systems' Advanced Precision Kill Weapon System (APKWS), which converts standard 70 mm (2.75-inch) Hydra rockets into laser-guided munitions. An F-16 fitted with six seven-tube launchers can carry up to 42 rockets.
Combat use and production
U.S. Air Force F-16s first used proximity-fuzed APKWS rockets against Houthi one-way attack drones over the Red Sea in 2024. During testing at Yuma Proving Ground, Arizona, APKWS rockets equipped with the L3Harris fuze destroyed Group 3 drones in every engagement.
The same fuze is used on L3Harris' VAMPIRE truck-mounted counter-drone system, which Ukraine has used against Russian drones since 2023.
L3Harris has said demand is driving a sevenfold increase in proximity fuze production. The company is investing in tooling, modernized inspection equipment and expanded suppliers, with a goal of increasing overall production capacity by 20 times.
The original May contract had options that could raise its $48.5 million value to about $98 million, with deliveries through July 2027, or September 2028 if all options are exercised.
Funding and future APKWS upgrade
Of the new $52.3 million, $44.8 million comes from fiscal 2026 Defense-wide operations and maintenance funds, $3.8 million from fiscal 2025 funds expiring on September 30, and $3.7 million from fiscal 2026 U.S. Army ammunition procurement funds. The Pentagon did not identify which units will receive the fuzes.
Separately, in February 2026, the U.S. Air Force awarded BAE Systems a contract worth up to $145 million for an upgraded air-to-air APKWS variant. It will combine a long-wave infrared seeker with a proximity-fuzed warhead, allowing the rocket to home on a drone's heat signature without continuous laser designation from the pilot.
The upgraded version is planned for U.S. Air Force F-16s and U.S. Navy MH-60 helicopters.
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