Micro Systems, Inc.

Micro Systems, Inc., operating its Unmanned Systems Division from Fort Walton Beach, Florida, manufactures electronic components, aerial target control systems, transponders, and related defense technology for the Navy, Army, and Air Force as a prime contractor competing in full and open competition without set-asides. The company is a subsidiary of Kratos Defense & Security Solutions, Inc., a publicly traded defense prime.

Micro Systems' capability footprint centers on airborne and ground-based target control systems, electronic components for weapons systems and test infrastructure, and specialized manufacturing for aerial platforms and munitions. Representative prime work includes a $2.82 million Naval Air Systems Command (NAVAIR) delivery order for SNTC-MSI production and spares (awarded April 2026), a $6.05 million Army PEO Simulation, Training and Instrumentation delivery order for Aerial Targets Target Control System datalink modernization to resolve obsolescence in command-and-control capabilities (May 2025), and a $3.66 million cost-plus-fixed-fee order from Army PEO STI for Army Ground Aerial Target Control System support, development, and production in fiscal year 2025 (May 2025). The company also recently achieved award on the $151 billion multi-award Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) IDIQ from the Missile Defense Agency (December 2025) and holds a seat on the $46 billion Eglin Wide Agile Acquisition Contract (EWAAC) with the Air Force (March 2025 on-ramp).

Micro Systems' customer concentration skews heavily toward Naval Air Systems Command and Army target operations. NAVAIR ranks first by award count (132 awards, $212.7 million combined potential value), followed by the Army Materiel Command Aviation and Missile Life Cycle Management Command (125 awards, $49.1 million). By potential-value ranking, the Air Force Materiel Command Lifecycle Management Center at Eglin Air Force Base dominates with 43 awards carrying $46 billion in combined potential value — the SHIELD and EWAAC vehicles. The top five customers account for 73% of awards. This concentration reflects Micro Systems' deep specialization in target control systems and aerial platforms for military training and test ranges.

Micro Systems holds significant single-award indefinite delivery contracts anchoring its prime portfolio. A $30.98 million NAVAIR IDC for scoring system suites, ground stations, and direct link packages (awarded November 2023, completion November 2028) has issued two delivery orders totaling approximately $9.75 million. A $23.97 million NAVAIR IDC for System of Naval Target Control production, spares, and repairs (awarded April 2024, completion April 2029) has issued three delivery orders totaling approximately $3.12 million. An $85.95 million Army PEO STI IDC for Ground Aerial Target Control System target operations, production, and development (referenced in multiple award summaries) generates recurring delivery orders. The company places task orders across multiple Army indefinite delivery contracts (W31P4Q05D0055 with 61 task orders, W31P4Q11D0028 with 55 task orders, W31P4Q18D0021 with 23 task orders) carrying limited combined potential values, suggesting these are lower-dollar ongoing sustainment vehicles.

In its subcontractor role, Micro Systems delivers electronic components, airborne systems, and manufacturing services primarily to Kratos Unmanned Aerial Systems, Inc. (parent division) and to Raytheon Company and Lockheed Martin Corporation. Recent sub work includes multiple BQM-167A and BQM-177A target manufacturing, integration, testing, and delivery orders under Kratos Unmanned Aerial Systems (ongoing through 2025–2026), transmitter manufacturing for the Advanced Medium Range Air-to-Air Missile (AMRAAM) under Raytheon, and integrated electronic assemblies for Small Diameter Bomb Increment II and related munitions integration work under Raytheon (August 2025). Other named subs route work through Amentum Services (naval air systems command range support, April 2025).

Recent activity shows volatility. The company placed 49 awards in 2024 but fell to 34 in 2025 and only 2 through April 2026 — a significant contraction. Only four awards with ultimate completion dates in the next twenty-four months carry combined potential value of $11.9 million, presenting minimal recompete exposure in that window but signaling a near-term revenue trough as major vehicle task orders complete. The company's two largest vehicle holdings — SHIELD and EWAAC — represent future-revenue optionality but no firm task orders yet beyond the one-dollar and one-thousand-dollar initial orders respectively, indicating these are strategic positions not yet monetized at scale. Place of performance for virtually all work is Okaloosa Island, Florida, the Unmanned Systems division headquarters.