Newly promoted Kratos executive expects continued focus on commercial approach

By Marjorie Censer / February 22, 2017 at 2:42 PM

Steve Fendley, who last month took over Kratos Defense & Security Solutions' growing unmanned systems business, says he expects the new administration to maintain its push for innovation.

Fendley has taken over the group from retired Vice Adm. Jerry Beaman, who had headed it since 2014. Fendley previously was general manager of the Composite Engineering business within the unmanned systems division.

In an interview with Inside Defense earlier this month, Fendley said the company expects to stand out because of its approach.

Last year, Kratos received a contract from the Defense Innovation Unit Experimental to explore using high-speed drones in fully or semi-autonomous roles supporting fourth- and fifth-generation fighter aircraft.

As part of the effort, Kratos will demonstrate its Unmanned Tactical Aerial Platform -- or UTAP-22 -- in what the company described as a "large, complex exercise." Kratos spent its own money to develop UTAP-22, which is a low-cost, converted version of an Air Force target drone Kratos produces.

Fendley said Kratos' "mindset and approach" fit that of DIUx.

"Let's don't start with a $500 million or $1 billion development program," he said of the company's strategy. "Let's start with leveraging innovation. Let's take advantage of what the commercial world does."

He said he hopes the new administration will continue to support DIUx and its approach.

"I feel pretty good that they're going to stay involved at the level they have been," Fendley said. "We're hoping and expecting that that's going to continue like it is."

Additionally, Fendley said Kratos' strategy fits with President Trump's focus on economy in defense contracting.

"The days of the 30-year development program may not be gone, but they're very few and far between," he said. "The ability to take something that already has a demonstrated capability . . . it's very, very inexpensive and very quick to take from concept to reality."

Kratos' chief executive has said he expects the company's unmanned systems business to double its sales within about two years.

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