The Navy Rusty Dagger missile contract announced this week hands Zone 5 Technologies a $65 million deal to build a maritime strike variant of its AGM-188 Rusty Dagger cruise missile, part of a new Pentagon push to field low-cost precision weapons faster than traditional acquisition programs allow. The award marks the second contract issued under the Navy’s CHAOS program in as many months.

The deal was brokered as an Other Transaction Agreement — a contracting mechanism the Pentagon increasingly uses to move weapons from concept to production faster than the standard acquisition process permits.

Under the Navy Rusty Dagger missile contract, Zone 5 Technologies — a subsidiary of Norway’s Kongsberg Defence & Aerospace since its acquisition in June — will design, build, test, and deliver a CHAOS-specific variant of its AGM-188 Rusty Dagger cruise missile. The $65 million Other Transaction Agreement was brokered by CMG Networks on behalf of the Naval Aviation Systems Consortium.

The award follows a $70 million CHAOS contract the Navy gave to CoAspire in July for its RAACM-ER maritime missile, making Zone 5’s deal the second award issued under the program within roughly a month.

Navy Rusty Dagger missile contract AGM-188 cruise missile on stand
Zone 5’s AGM-188 Rusty Dagger cruise missile, now the subject of a $65 million Navy contract for a maritime strike variant. (Zone 5 Technologies)

Zone 5 is proud to partner with the Navy on CHAOS and deliver industry-best scalable maritime strike capabilities to the U.S. and our allies.

Thomas Akers, CEO, Zone 5 Technologies

What Is the CHAOS Program

CHAOS stands for Coalition Heterogeneous Affordable Offensive Strike, a Navy initiative focused on fielding scalable, low-cost precision-strike weapons for both land and maritime targets. The program is designed to give the U.S. and its coalition partners an affordable strike option that can be produced at volume, rather than relying solely on smaller numbers of exquisite, high-cost munitions.

The CHAOS effort reflects a broader Pentagon shift toward mass-producible weapons following high munitions expenditure rates observed in recent conflicts, including operations against Iran. Both CHAOS contracts awarded so far — to CoAspire in July and Zone 5 in August — target the same underlying need: an affordable, scalable maritime strike capability that can be fielded quickly.

What Is the AGM-188 Rusty Dagger

The Rusty Dagger originated as Zone 5’s entry in the Air Force’s Extended Range Attack Munition program, launched in 2024 to address long-range strike requirements tied to support for Ukraine. The Air Force later designated the missile AGM-188A. Publicly reported characteristics include:

  • Falls in the roughly 200 kg (450 lb) weight class
  • Powered by a single PBS Aerospace TJ80 turbojet engine
  • Air-launched range reported to exceed 930 km (500 nautical miles) at high subsonic speed
  • Built within the size and weight envelope of a Mk 82 general-purpose bomb, allowing carriage by aircraft already configured to drop that munition

Precise specifications vary slightly across public sources, and the Navy’s CHAOS-specific maritime strike variant may differ from the baseline Air Force configuration once finalized.

Combat-Proven Before the Navy Deal

Unlike many new munitions programs, the Rusty Dagger arrives at the Navy with an existing combat record. The missile is already in production for Ukraine’s Air Force and has reportedly been used in long-range strike campaigns against Russian military production targets — giving the Navy a production-ready weapon rather than one still working through early testing.

Zone 5’s Chief Strategy Officer Tom Kanewske framed that combat history as central to the pitch behind the award, describing the company’s “proven performance as the only affordable mass cruise missile in production” as key to meeting the Navy’s timeline.

FAQ: Navy Rusty Dagger Missile Contract

Who won the Navy’s Rusty Dagger missile contract?

Zone 5 Technologies, a subsidiary of Norway’s Kongsberg Defence & Aerospace, was awarded the $65 million Other Transaction Agreement to build a maritime strike variant of its AGM-188 Rusty Dagger cruise missile.

What is the CHAOS program?

CHAOS, short for Coalition Heterogeneous Affordable Offensive Strike, is a Navy program aimed at fielding affordable, scalable precision-strike weapons for land and maritime targets. Zone 5’s award is the second CHAOS contract issued, following a $70 million deal with CoAspire in July.

Has the Rusty Dagger missile been used in combat?

Yes. The Rusty Dagger, designated AGM-188A, is already in production for Ukraine’s Air Force and has reportedly been used in long-range strikes against Russian military targets, giving it a combat track record ahead of the Navy’s award.

Looking Ahead

The Navy Rusty Dagger missile contract reflects the Pentagon’s broader push toward affordable, mass-producible strike weapons as both the Air Force and Navy work to rebuild munitions stockpiles at scale. With two CHAOS contracts now awarded within a matter of weeks, the program’s pace suggests the Navy intends to move quickly from contract award to fielded capability.

The Aviation Diary will continue tracking the CHAOS program, Rusty Dagger development, and broader U.S. munitions procurement as further contracts and testing milestones are announced.

Sources

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Nabeel Khan

Written by

Nabeel Khan

Nabeel Khan is the founder and editor of The Aviation Diary. An aerospace industry professional and lifelong aviation enthusiast, he covers military aviation, commercial aviation, aerospace, defense, and space. He built an aviation following across Instagram, TikTok, YouTube, and Threads before launching The Aviation Diary to bring that same coverage to a dedicated news site. Views expressed are his own.

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