Kratos Awarded $1.45 Billion Contract By the Pentagon

The Pentagon has awarded Kratos a massive $1.45 billion contract to develop a cutting-edge hypersonic technology testbed, marking a significant leap in America’s efforts to catch up with China and Russia in this critical defense domain.

At a Glance

Kratos secures a $1.45 billion contract for MACH-TB 2.0 hypersonic testbed development.
The project aims to increase frequency and reduce costs of hypersonic flight tests.
Kratos leads a team including Leidos, Rocket Lab, and Koda Technologies.
The initiative is part of U.S. efforts to catch up with China and Russia in hypersonic capabilities.
The contract is the largest in Kratos’ history, spanning five years.

Pentagon’s Strategic Move in Hypersonic Race

The U.S. Department of Defense has taken a significant step forward in the global hypersonic arms race by awarding Kratos a $1.45 billion contract for the development of the MACH-TB 2.0 hypersonic technology testbed. This five-year Other Transaction Authority (OTA) agreement represents the largest contract in Kratos’ history and underscores the Pentagon’s commitment to advancing America’s hypersonic capabilities.

The MACH-TB 2.0 program, which originated from a U.S. Navy effort, aims to significantly enhance the frequency and affordability of hypersonic flight tests. This initiative is crucial for the United States to bridge the gap with Russia and China, who have reportedly made substantial advancements in hypersonic weapon systems.

Kratos wins firm’s largest-ever $1.5 billion award for DoD hypersonic testbed https://t.co/50rXqOiF3m

— Breaking Defense (@BreakingDefense) January 6, 2025

Kratos’ Role and Team Composition

Under Task Area 1 of the contract, Kratos is responsible for systems engineering, integration, and testing, including subscale, full-scale, and air launch services. The company has assembled a formidable team of partners, including Leidos, Rocket Lab, and Koda Technologies, to tackle this complex project.

“Kratos is honored to receive the largest contract award in our company’s history, a testament of the value Kratos’ employees and team bring both to our Company and United States National Security,” Kratos CEO Eric DeMarco said.

Kratos’ expertise in hypersonic systems, including the Zeus solid rocket motor and the DART AE scramjet drone, positions the company well for this ambitious undertaking. The successful testing of their Erinyes hypersonic test vehicle further demonstrates Kratos’ capabilities in this cutting-edge field.

Bridging the Gap in Hypersonic Capabilities

The MACH-TB program is designed to bridge the gap between hypersonic ground tests and full-scale system-level flight tests. This approach aims to minimize development risks and accelerate the delivery of advanced hypersonic technologies to the U.S. military. The initiative supports advanced flying testbeds for assessing hypersonic subsystems at speeds surpassing Mach 5, which are highly valued in modern warfare due to their difficulty to intercept.

Recent successful tests of a joint Army-Navy hypersonic missile indicate progress toward achieving parity with rival nations. Additionally, the Air Force is advancing its hypersonic projects, signaling an acceleration in U.S. hypersonic arms development across multiple branches of the military.

Challenges and Criticisms

Despite the optimism surrounding the MACH-TB program, it has not been without criticism. The U.S. Government Accountability Office has raised concerns about a lack of transparency in the program. Moreover, the United States has yet to field its first operational hypersonic weapon system, while rivals like China and Russia have reportedly made significant strides in this area.

“Years of effort and billions of dollars spent on hypersonic weapon development have yielded considerable progress, but DoD has yet to field its first operational hypersonic weapon system. Yet even fielding these first prototypes will not ensure an effective or affordable capability,” a GAO report stated last year.

As the global race for hypersonic supremacy intensifies, the success of the MACH-TB 2.0 program could prove pivotal in maintaining America’s strategic defense parity on the world stage. With Kratos at the helm and a significant investment from the Pentagon, the United States is poised to make substantial progress in this critical area of national security.