Kratos Completes Preliminary Design Review for Space Development Agency’s Advanced Fire Control Ground Integration (AFCGI) System

Rhea-AI Summary

Kratos Defense & Security Solutions (NASDAQ: KTOS) has achieved a significant milestone by completing the Preliminary Design Review (PDR) for the Space Development Agency's Advanced Fire Control Ground Integration (AFCGI) system with zero liens. The company, which secured a $116.7 million prime contract for AFCGI in 2024, completed the review in April 2025, just five months after the award.

The AFCGI program integrates advanced software, resilient ground systems, and secure networks into a unified architecture for real-time fire control. Through its OpenSpace® platform, Kratos will deliver and manage ground segment resources, operate a demonstration center, and run a secure cloud environment for mission software integration.

Insights

Defense Technology and Government Contracting Expert

Kratos' successful zero-lien PDR accelerates $116.7M Space Development Agency contract, strengthening its position in mission-critical defense systems.

Kratos has reached a significant milestone by completing the Preliminary Design Review for the Space Development Agency's Advanced Fire Control Ground Integration (AFCGI) system with zero liens—meaning all design challenges were fully resolved without outstanding issues. This achievement is particularly notable as it was completed in just five months from the contract award, demonstrating exceptional execution speed in the typically slower-moving defense sector.

The $116.7 million prime contract awarded in 2024 positions Kratos at the center of a strategically important defense capability. The AFCGI system integrates software, ground systems, and secure networks into a unified architecture for real-time fire control—essentially creating the command and control infrastructure that allows various space-based assets to function as a cohesive system.

What makes this particularly valuable is Kratos' implementation approach. Their OpenSpace® platform virtualizes ground functions with advanced orchestration, allowing for software-defined scalability rather than hardware-constrained architectures. This modern approach enables rapid adaptation that legacy systems simply cannot match, which aligns perfectly with the Space Development Agency's focus on accelerated timelines and technical agility.

The contract scope extends beyond just development—Kratos will manage ground segment resources, operate a government-owned, contractor-operated demonstration center, and run secure cloud environments for mission software integration. This breadth of responsibilities indicates deep customer trust in Kratos' capabilities across the full spectrum of space ground systems.

Managed Complex Ground Integration Program of Critical Systems with Diverse Partners

SAN DIEGO, Sept. 29, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, has successfully completed the Preliminary Design Review (PDR) for the Space Development Agency’s Advanced Fire Control Ground Integration (AFCGI) system. Kratos’ successful completion of the PDR with zero liens allows the program to advance on an accelerated timeline, aligning with projected launch milestones.

As previously announced, in 2024 Kratos secured a $116.7 million prime contract for the AFCGI program. AFCGI integrates advanced software, resilient ground systems and secure networks into a unified architecture for real-time fire control. It is a complex capability providing the warfighter with immediate, mission-relevant advantages. Achieving zero liens signifies that all design challenges, risks and outstanding items identified during the review for this program were thoroughly addressed and resolved, ensuring no lingering issues remain that could impede the project’s progress. Kratos completed the PDR in April of 2025, only five months from the award date.

Greg Caicedo, Senior Vice President of Kratos Space, said, “Kratos is leading this strategic and complex program with our industry partners to meet SDA’s demand for speed. An advanced software-enabled approach delivered on aggressive timelines enables rapid adaptation and readiness far beyond what legacy hardware-centric systems can achieve.”

Kratos, along with its diverse team, will deliver and manage ground segment resources, operate a government-owned, contractor-operated (GOCO) demonstration center and run a secure cloud environment for mission software and partner system integration. Kratos will also provide program management, engineering, integration, testing and operations for the entire ground structure. Through its OpenSpace^® platform, Kratos is integrating virtualized ground functions with advanced orchestration and automation, allowing software-defined scalability to support the complex demands of the program.

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading-edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2024, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Claire Cantrell
claire.cantrell@kratosdefense.com

Investor Information:
877-934-4687
investor@kratosdefense.com

FAQ

What is the value of Kratos Defense's AFCGI contract with the Space Development Agency?

Kratos secured a $116.7 million prime contract for the AFCGI program in 2024.

What does zero liens mean in Kratos's PDR completion for the AFCGI system?

Zero liens means that all design challenges, risks, and outstanding items were thoroughly addressed and resolved, with no remaining issues that could impede the project's progress.

How long did it take Kratos (KTOS) to complete the Preliminary Design Review?

Kratos completed the PDR in April 2025, just five months after the award date, demonstrating rapid progress on the program.

What is Kratos's role in the AFCGI program?

Kratos will deliver and manage ground segment resources, operate a demonstration center, run a secure cloud environment, and provide program management, engineering, integration, testing, and operations for the entire ground structure.

What technology is Kratos using for the AFCGI system integration?

Kratos is using its OpenSpace® platform to integrate virtualized ground functions with advanced orchestration and automation, enabling software-defined scalability.