The Navy authorized full-rate production (FRP) of BAE Systems’ laser-guided rocket system known as Advanced Precision Kill Weapon System (APKWS), according to a company statement.

BAE spokeswoman Karen Spiller said Monday in an email the company received the contract July 31 and immediately started work. Spiller said the first FRP deliveries will be in October and the company expects the next FRP option to be awarded by the end of 2012.

APKWS converts the Hydra 70 unguided rocket into a laser-guided rocket through the addition of a mid-body guidance unit developed by BAE Systems. APKWS, which is the only 2.75-inch (70 mm) laser-guided rocket program of record for the U.S. government, allows armed forces to accurately engage targets in areas where the threat of non-combat casualties and collateral damage prevented warfighters from doing so in the past, according to a company statement.

“BAE Systems designed the APKWS technology to fill the gap between the Hellfire missile and unguided rockets,” John Watkins, director of precision guided solutions for BAE, said in a statement. “Today, the weapon is doing its job of providing our warfighters with a precise and reliable rapid-fire missile system, especially effective in the difficult terrain of Afghanistan.”

BAE is supporting U.S. government plans to expand its use to other platforms, including Northrop Grumman’s [NOC] MQ-8B Fire Scout unmanned autonomous helicopter and Sikorsky’s armed MH-60S Seahawk helicopter, according to a statement. Spiller said other platforms would include Boeing’s [BA] AH-64 Apache helicopter, Bell Helicopter’s OH-58 Kiowa helicopter and any other platform that would be fitted with 2.75-inch rockets.

APKWS was shot for the first time in March from Bell’s AH-1W SuperCobra and UH-1Y Venom helicopters supporting Marine Corps ground forces during combat operations in Afghanistan, according to a statement.

Sikorsky is a division of United Technologies Corp. [UTX] while Bell Helicopter is a unit of Textron [TXT].