The Pentagon awarded a $500 million contract to AeroVironment for commercial counter-drone technology, a deal that spans three years and targets defenses against small unmanned aerial systems1.
The contract was listed under the Army section of the Defense Department's online contract update posted on Wednesday. The award language contained few details; locations and specific funding will be determined with each order. Small unmanned aerial systems were specifically referenced in the contract scope.
AeroVironment manufactures the Switchblade loitering drone and the LOCUST directed energy laser, among other defense technologies. TipRanks characterized the contract as a $500 million Army laser contract that strengthens AeroVironment's long-term outlook2.
ANALYSIS The contract's focus on procuring commercial counter-drone technology — rather than funding a new development program — suggests the Army is prioritizing fielding existing or near-term solutions against the drone threat. AeroVironment's existing portfolio, which includes both kinetic (Switchblade) and directed energy (LOCUST) systems, positions the company as a supplier across multiple counter-drone modalities under a single contract vehicle.