US Navy awards BAE Systems contract to upgrade IFF transponder

The US Navy has awarded BAE Systems a USD 30 million (EUR million) contract to refresh the AN/APX-123A(V) Common Transponder (CXP), which provides time-critical insights that help prevent friendly fire incidents, BAE Systems announced on 4 June 2025.

The refreshed CXP will support the US Navy fleet and joint forces for air defence, weapon systems, air traffic control and range instrumentation.

The upgrade will serve as a replacement option for currently installed identification friend or foe (IFF) transponders on existing and emerging platforms, including unmanned aerial vehicles, ships, and fixed- and rotary-wing aircraft. As a form, fit and function replacement, the upgrade’s design will address obsolescence and processing capacity issues to support future needs. Its open-system architecture design and high-density field-programmable gate array technology ensures ongoing versatility and future utility through software upgrades, without the risk and cost associated with hardware modifications.

“Common transponders provide our servicemen and -women with a reliable and secure solution to help them identify friendly forces and make decisions in a variety of threat environments,” Seth Guanu, Combat Identification Products programme area director at BAE Systems, was quoted as saying in a company press release. “The level of speed, security and accuracy matters to support interoperability across US forces. This modernisation effort enables us to deliver a critical capability to thousands of existing applications and equip emerging platforms.”

The AN/APX-123A(V) CXP will be Mark XIIB IFF certified with Mode S and Mode 5 for secure and encrypted data exchange, this meeting latest US Department of Defense standards. It will also include additional receive channels for passive acquisition of Mode 5 Level 2 and Automatic Dependent Surveillance – Broadcast In, enhancing situational awareness for warfighters. It will also provide high-performance, multi-function capabilities while supporting the latest crypto requirements.

BAE Systems has delivered over 1,500 interrogators, 6,000 combined interrogator transponder systems and 16,000 transponders during its work in the IFF domain.

The AN/APX-123A(V) CXP technical refresh work will be performed at BAE Systems’ facilities in Greenlawn, New York, and Austin, Texas. Production hardware is expected to be qualified for flight and delivered to users in 2027.