Key Points
- The U.S. Navy awarded Zone 5 Technologies a $65 million contract to build a maritime strike variant of its Rusty Dagger cruise missile under the CHAOS program.
- The award follows a $70 million CHAOS contract the Navy gave CoAspire in July for its RAACM-ER maritime missile.
The U.S. Navy has awarded Zone 5 Technologies a $65 million contract to build a maritime strike variant of its AGM-188 Rusty Dagger cruise missile under a new program aimed at fielding low-cost precision weapons for the U.S. and its allies.
The award is an Other Transaction Agreement, a contracting mechanism the Pentagon uses to move faster than traditional acquisition rules allow. CMG Networks brokered the deal on behalf of the Naval Aviation Systems Consortium. Under the agreement, Zone 5 will design, build, test, and deliver a CHAOS-specific version of the Rusty Dagger for the Navy’s Coalition Heterogeneous Affordable Offensive Strike program, which is intended to field affordable, scalable precision strike weapons against land targets and moving maritime targets.
“Zone 5 is proud to partner with the Navy on CHAOS and deliver industry-best scalable maritime strike capabilities to the U.S. and our allies,” said Thomas Akers, CEO of Zone 5 Technologies.
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Zone 5 is working on the effort with PAE Munitions and its Precision Strike Weapons program office, PMX-201, the company said. Zone 5 said it will draw on its experience fielding precision strike weapons across multiple service branches and international partners to provide a strike capability it described as credible, affordable, and scalable.
The award is the second CHAOS contract the Navy has issued for a low-cost maritime strike missile. In July, the Navy selected CoAspire for a $70 million agreement to develop a ground-launched maritime variant of its Rapidly Adaptable Affordable Cruise Missile-Extended Range, known as RAACM-ER, which has a claimed range of about 1,800 km (1,120 miles).
The Rusty Dagger, designated AGM-188A by the U.S. Air Force, originated as a low-cost cruise missile developed for the Air Force’s Extended Range Attack Munition program, which began in 2024 to address long-range strike requirements tied to Ukraine. The missile falls in the 200 kg (450 pound) weight class, including a roughly 45 kg (100 pound) warhead, and is powered by a single PBS Aerospace TJ80 turbojet engine. Its air-launched range is reported to exceed 930 km (500 nautical miles) at high subsonic speed. The missile is built within the size and weight envelope of a Mk 82 general-purpose bomb, allowing it to be carried by aircraft already equipped to drop that weapon.
The Rusty Dagger has already seen combat use. Zone 5 has said the missile is in production for Ukraine’s Air Force, and reporting on Russian territory has documented missile debris linked to Zone 5 through a recovered guidance antenna. The Air Force has separately selected Rusty Dagger for its Family of Affordable Mass Munitions program, which called for producing more than 1,000 units in its first year of production, according to Zone 5. The Air Force’s proposed fiscal 2027 budget outlined plans to buy nearly 28,000 Family of Affordable Mass Munitions rounds over five years. The Air Force Research Laboratory separately awarded Zone 5 a $12 million contract in June 2026 to develop manufacturing technology intended to scale Rusty Dagger production, with work centered in Miamisburg, Ohio.
Zone 5 Technologies, based in San Luis Obispo, California, was acquired by Norway’s Kongsberg and now operates as a Kongsberg company. The company describes itself as an aerospace engineering and production firm focused on modular, open-architecture counter-UAS interceptors and affordable ground- and air-launched effects. Founded in 2011, Zone 5 employs more than 500 engineers, technicians, and support staff, with manufacturing operations in California, Texas, and Ohio.
