ATK Receives $50 Million Contract Modification to Deliver Additional Precision Mortars to Meet U.S. Army's Urgent Operational Needs

ATK-Developed Precision Mortar Will Provide Battlefield Commanders an Organic, Precision Weapon Capability in Afghanistan

ATK Mortar Guidance Kit Converts Conventional Mortar Bodies into Precision Guided Munitions

Program Work Conducted at Minnesota and West Virginia ATK Facilities

Mar 24, 2011, 08:00 ET from ATK

MINNEAPOLIS, March 24, 2011 /PRNewswire/ -- ATK (NYSE: ATK) has received a $50 million follow-on contract modification for production of the Mortar Guidance Kit (MGK) under the U.S. Army's Accelerated Precision Mortar Initiative (APMI) program.  The contract is in response to an Army urgent Operational Needs Statement (ONS) and will mean more precision mortars going to U.S. forces in Afghanistan.  ATK was previously awarded a contract in June 2010 to field an initial quantity of rounds under the Army's ONS.

Combining GPS guidance and directional control surfaces into a package that replaces standard fuzes, the MGK transforms existing 120mm mortar bodies into precision guided munitions.  This puts organic, precision engagement capability into the hands of local battlefield commanders.  The design is based on ATK's Precision Guidance Kit technology for artillery.

"Delivering affordable precision is a core capability of our business," said Bruce DeWitt, ATK Advanced Weapons Vice President and General Manager.  "Using our expertise in guidance, fuzing, and gun-hardened electronics, we have proven that the timeline and cost of producing a precision weapon can be greatly reduced.  In under a year, we have proven a reliable design, initiated production and fielded a precision weapon.  This is truly unprecedented in our industry."

In less than one year's time, the APMI team met an aggressive schedule to field the rounds for operational assessment in theater.  These achievements included the following:

  • Completed sequential environmental testing for performance and safety (SET-P and SET-S, respectively)
  • Established a production line with capacity to meet deliverable production quantities and quality on time
  • Passed First Article Acceptance Testing (FAAT)
  • Executed the necessary Lot Acceptance Testing (LAT)
  • Delivered the required quantities on time for shipment to theater
  • Received Urgent Material Release (UMR) authorization

Leading up to the UMR, ATK was awarded a contract in April 2010 for Phase II of the APMI program having successfully completed Phase I; a four-month design, maturation, and demonstration program that concluded with ATK winning a competitive "shoot off" at the Yuma Proving Grounds in Arizona.  At the conclusion of the shoot off, ATK's MGK was selected as the best-value solution to meet the requirements for the Army's APMI.  During the competition, MGK demonstrated the ability to achieve a circular error probable (CEP) of less than 10 meters, a substantial improvement over conventional mortars that are accurate to about a 136-meter CEP. 

Program design and management is headquartered in ATK's Plymouth, Minn. facility while production takes place at the company's proving grounds near Elk River, Minn. and also in Rocket Center, W. Va.  ATK specializes in developing innovative, advanced weapon systems that provide affordable precision and effectiveness for artillery, mortars, tanks, naval gun systems, and tactical aircraft.

ATK is an aerospace, defense, and commercial products company with operations in 24 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion.  News and information can be found on the Internet at

Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved.  Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected.  Among those factors are: changes in governmental spending, budgetary policies and product sourcing strategies; the company's competitive environment; the terms and timing of awards and contracts; and economic conditions.  ATK undertakes no obligation to update any forward-looking statements.  For further information on factors that could impact ATK, and statements contained herein, please refer to ATK's most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.

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