# DIU Seeks Low-Cost ISR Systems

The Defense Innovation Unit (DIU) issued its Low Cost ISR prize challenge solicitation on September 29, 2026, seeking mature, affordable unmanned aerial systems for expeditionary intelligence, surveillance, and reconnaissance missions. The challenge offers **$100 million** in combined prize awards and initial follow-on funding, with up to $250 million more budgeted for potential development, production, and integration. Submissions are due **October 14, 2026 (13 days remaining)**; applicants should provide a pitch deck, rough-order-of-magnitude cost estimate, and production plan. Flyoffs are planned for the second and third quarters of FY 2027.

- Companies interested in competing should prepare the specified submission materials and demonstrate system maturity, affordability, and production capacity.
- The potential additional funding is not guaranteed; it represents a possible path from challenge participation to development, production, and integration work.
- The challenge’s emphasis on low lifecycle cost and affordable mass makes cost estimates and scalable production plans central to the opportunity.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Grants & Funding
**Published:** September 30, 2026

### Government Entities
- Defense Innovation Unit (DIU)

### Sources
- [DIU Launches $100 Million Low-Cost Aerial ISR Prize Challenge - Defense Daily](https://www.defensedaily.com/diu-launches-100-million-low-cost-aerial-isr-prize-challenge/unmanned-systems) - Defense Daily
- [DIU Seeks Low-Cost Unmanned ISR Systems via $100M Challenge](https://www.executivegov.com/articles/diu-uas-isr-missions-100m-prize-challenge) - executivegov.com