Kratos Defense & Security Solutions (NASDAQ: KTOS) announced it will allocate production capacity of its Spartan TDI-J85 engines to support Boeing's Joint Direct Attack Munition Long Range (JDAM LR) program, according to a company press release.

The U.S. Air Force awarded Boeing a $75 million Undefinitized Contract Action this month to acquire the BSU-111/B Payload Delivery Unit JDAM LR, a precision-guided munition capable of traveling more than 300 nautical miles while carrying a 500-pound (226-kilogram) payload. The Kratos J85 engine has been selected as the propulsion source for the munition.

Kratos has begun procurement of long-lead components for Spartan engines to support a large production run planned for 2027, serving multiple customers and applications. The company said the bulk order is intended to generate economies of scale on cost.

The J85 engines are manufactured at Kratos' 22,500-square-foot Propulsion Manufacturing Facility in Auburn Hills, Michigan.

"National security priorities demand affordable mass and resilient, domestic supply chains," said Steve Fendley, President of Kratos Unmanned Systems. "Kratos' internally funded and proactive supply-chain investments ensure we are not just preparing for future demand, and we are actively manufacturing the high-volume propulsion systems our customers require today."

Kratos is also executing a three-phase manufacturing infrastructure plan intended to expand production capacity at the Auburn Hills facility.

"Integrating the Spartan turbojet family into Boeing's JDAM LR program provides a reliable, scalable, domestically sourced propulsion solution that meets urgent national defense needs," said Joseph Kovasity, Senior Vice President of Kratos TDI.