# U.S. Army Awards AeroVironment $500M Counter-Drone Contract

The U.S. Army awarded AeroVironment a **$500 million** firm-fixed-price contract on July 1, 2026, to supply commercial off-the-shelf counter-unmanned aerial systems (C-UAS) capabilities. Managed by the Army Contracting Command at Detroit Arsenal, Michigan, this contract supports the Army's strategic priority to enhance defenses against evolving threats from small unmanned aerial systems through June 29, 2029. AeroVironment's technologies, including directed energy systems like LOCUST, will be central to this effort to detect and neutralize enemy drones cost-effectively.

- The contract reflects a significant investment in counter-drone technology, signaling increased demand for commercial C-UAS solutions within military procurement.
- Procurement professionals should note the focus on rapid deployment of commercial off-the-shelf systems, which may influence future contract requirements and vendor selection criteria.
- Contractors specializing in counter-UAS technologies and directed energy systems can leverage this opportunity to align offerings with Army priorities and supply chain expectations.
- The involvement of the Army Contracting Command at Detroit Arsenal highlights a key contracting hub for defense technology acquisitions in this domain.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Cybersecurity
**Published:** July 02, 2026

### Government Entities
- U.S. Army (Army)
- Army Contracting Command at Detroit Arsenal
- U.S. Department of Defense (DoD)
- Joint Interagency Task Force 401 (JIATF 401)

### Vendors
- AeroVironment (prime contractor)

### Key Quotes
> We remain focused on executing with excellence and strengthening our supply chain to accelerate the commercialization of our platforms.
> — Wahid Nawabi, CEO of AeroVironment

### Sources
- [AeroVironment Lands $500M Army Counter-Drone Contract](https://www.govconwire.com/articles/aerovironment-army-counter-drone) - GovCon Wire
- [ARMY AWARDS $500M TO COUNTER-DRONE TECH

The U.S. Army is doubling down on drone defense, handing AeroVironment a massive $500M contract to develop cutting-edge counter-drone systems. The battlefield threat from enemy drones is real and growing. 🚁⚔️

https://t.co/KA0lODIJsQ](https://x.com/SkyGlass12/status/2072652189101666479) - twitter-defense
- [Pentagon awards $500M contract for counter-drone tech to AeroVironment | DefenseScoop](https://defensescoop.com/2026/07/02/pentagon-awards-500m-contract-aerovironment-counter-drone-technology) - DefenseScoop