Key Takeaways
- The U.S. Navy has awarded Zone 5 Technologies a $65 million contract to develop a maritime strike version of the AGM-188 Rusty Dagger cruise missile.
- This initiative is part of the CHAOS program aimed at producing affordable precision strike weapons for the U.S. and its allies.
- Zone 5, a subsidiary of Norway’s Kongsberg, has experience in precision strike weapon development and will collaborate with PAE Munitions on the project.
Contract Overview
The U.S. Navy has awarded a $65 million contract to Zone 5 Technologies to create a maritime strike variant of its AGM-188 Rusty Dagger cruise missile under the Coalition Heterogeneous Affordable Offensive Strike (CHAOS) program. This initiative aims to develop low-cost, scalable precision weaponry for use by the U.S. and its allies.
The contract is structured as an Other Transaction Agreement, allowing more efficient procurement than traditional methods. CMG Networks facilitated the deal through the Naval Aviation Systems Consortium. Under this contract, Zone 5 will handle the design, construction, testing, and delivery of a specialized Rusty Dagger for maritime and land targets.
Collaboration and Objectives
Zone 5 Technologies will work closely with PAE Munitions and the Precision Strike Weapons program office, PMX-201. With its extensive background in precision strike systems across various military branches and international initiatives, Zone 5 is committed to providing a reliable and affordable strike capability.
This award marks the second CHAOS contract, following a $70 million agreement given to CoAspire in July to develop a ground-launchable variant of the Rapidly Adaptable Affordable Cruise Missile-Extended Range (RAACM-ER), which boasts a range of approximately 1,800 km.
The Rusty Dagger Missile
The Rusty Dagger, referred to as AGM-188A by the U.S. Air Force, is designed as a cost-effective missile developed as part of the Extended Range Attack Munition program initiated in 2024. Its specifications classify it within the 200 kg weight range, with a 45 kg warhead and a turbojet engine enabling a range exceeding 930 km. The missile’s design allows it to be transported on aircraft capable of delivering standard munitions like the Mk 82 bomb.
Current Usage and Future Plans
The Rusty Dagger has already seen combat deployment, with reports indicating its use by Ukraine’s Air Force, further solidified by documentation of missile debris within Russian territory linked to Zone 5, identified by a recovered guidance antenna. Moreover, the U.S. Air Force has selected the Rusty Dagger for its Family of Affordable Mass Munitions program, projecting over 1,000 units to be produced in its inaugural year. The fiscal 2027 budget proposes sourcing approximately 28,000 munitions over five years.
In June 2026, the Air Force Research Laboratory awarded Zone 5 a $12 million contract aimed at refining manufacturing techniques to boost Rusty Dagger production capabilities.
Company Background
Zone 5 Technologies, established in 2011 and based in San Luis Obispo, California, operates as a subsidiary of Kongsberg, a Norwegian firm. The company specializes in aerospace engineering with a focus on modular, open-architecture systems for counter-UAS interceptors and various air- and ground-launched munitions. Zone 5 employs over 500 engineers and support staff across its facilities in California, Texas, and Ohio.
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