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US Navy Awards $65M CHAOS Contract for Low-Cost Missiles

Key Takeaways
  • US Navy awards $65M contract to Zone 5 Technologies for CHAOS program.
  • Contract is for a maritime strike variant of the AGM-188 Rusty Dagger cruise missile.
  • Zone 5 will design, build, test, and deliver the missile.
  • This is the second CHAOS contract awarded by the Navy.
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Strategic Implications

The award may indicate the Navy's growing interest in low-cost precision weapons, which could signal a shift in procurement priorities. The selection of Zone 5 Technologies suggests confidence in the company's ability to deliver affordable and scalable maritime strike capabilities, which could have implications for the future of naval warfare.

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What Happened

Zone 5 Technologies To Develop Maritime Strike Variant Of Rusty Dagger

The US Navy has awarded Zone 5 Technologies a $65 million contract to develop a maritime strike variant of the AGM-188 Rusty Dagger cruise missile under the Coalition Heterogeneous Affordable Offensive Strike (CHAOS) program. The contract is part of the Navy’s effort to field affordable, scalable precision strike weapons against land and maritime targets. Zone 5 will work with PAE Munitions and the Naval Aviation Systems Consortium to deliver the missile. The award is the second CHAOS contract issued by the Navy, following a $70 million agreement with CoAspire in July. This development was first reported by Defence Blog.

Source | Originally Published: August 22, 2026

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JUMPSEAT
AEROSPACE NEWS
JUMPSEAT
AEROSPACE NEWS

US Navy Awards $65M CHAOS Contract for Low-Cost Missiles

Sponsored by: Jumpseat Solutions
Key Takeaways
  • US Navy awards $65M contract to Zone 5 Technologies for CHAOS program.
  • Contract is for a maritime strike variant of the AGM-188 Rusty Dagger cruise missile.
  • Zone 5 will design, build, test, and deliver the missile.
  • This is the second CHAOS contract awarded by the Navy.
Sign in to view key takeaways Get full access to in-depth analysis and key takeaways.
Sign In
Silver membership required Upgrade to Silver to access Key Takeaways.
Upgrade
Strategic Implications

The award may indicate the Navy's growing interest in low-cost precision weapons, which could signal a shift in procurement priorities. The selection of Zone 5 Technologies suggests confidence in the company's ability to deliver affordable and scalable maritime strike capabilities, which could have implications for the future of naval warfare.

Sign in to view strategic implications Get full access to strategic analysis and expert insights.
Sign In
Silver membership required Upgrade to Silver to access Strategic Implications.
Upgrade

What Happened

Zone 5 Technologies To Develop Maritime Strike Variant Of Rusty Dagger

The US Navy has awarded Zone 5 Technologies a $65 million contract to develop a maritime strike variant of the AGM-188 Rusty Dagger cruise missile under the Coalition Heterogeneous Affordable Offensive Strike (CHAOS) program. The contract is part of the Navy’s effort to field affordable, scalable precision strike weapons against land and maritime targets. Zone 5 will work with PAE Munitions and the Naval Aviation Systems Consortium to deliver the missile. The award is the second CHAOS contract issued by the Navy, following a $70 million agreement with CoAspire in July. This development was first reported by Defence Blog.

Source | Originally Published: August 22, 2026

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