BAE Systems has received the US Navy’s $30m contract to upgrade the Identification Friend or Foe (IFF) AN/APX-123A(V) Common Transponder (CXP) for preventing friendly fire incidents.

This upgrade will support the US Navy and joint forces across various platforms, including unmanned aerial vehicles, ships and aircraft.

The upgraded CXP will offer a replacement for current IFF transponders, addressing obsolescence and increasing processing capacity to meet future demands.

Its design enables integration as a form, fit, and function replacement, ensuring compatibility with existing and emerging military assets.

BAE Systems’ approach to the CXP upgrade features an open-system architecture and high-density field programmable gate array technology.

This allows for software updates to extend the transponder’s utility without the need for costly hardware changes.

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BAE Systems Combat Identification Products programme area director Seth Guanu said: “Common transponders provide our service men and women with a reliable and secure solution to help them identify friendly forces and make decisions in a variety of threat environments.

“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 equipped with the latest encryption and secure data exchange standards, including Mark XIIB IFF certification with Mode S and Mode 5.

It will also incorporate additional receive channels to enhance situational awareness through passive acquisition of Mode 5 Level 2 and Automatic Dependent Surveillance – Broadcast In.

The technical refresh of the AN/APX-123A(V) CXP will be carried out at BAE Systems’ facilities in Greenlawn, New York, and Austin, Texas.

The production hardware is anticipated to undergo flight qualification and be delivered by 2027.

In April 2025, BAE Systems has secured a contract valued at $188.5m to produce 30 Amphibious Combat Vehicle (ACV)-30mm vehicles for the US Marine Corps.