# Army FUZE Connects Prototypes to Procurement

The Army’s FUZE innovation hub plans to use its $750 million annual research, development, test and evaluation portfolio to tackle larger acquisition challenges in FY2027, with an emphasis on moving prototypes toward viable procurement and fielding paths. A near-term opportunity is the xTech Disrupt Fires competition, which plans to award up to four $1 million prizes for concepts supporting a second low-cost interceptor for IFPC Increment 2. The Army says the competition is separate from the ongoing IFPC Increment 2 effort, where Lockheed Martin and a Boeing-Anduril team were selected to advance to phase two.

- Companies developing low-cost interceptor concepts can evaluate the xTech Disrupt Fires competition as a distinct opportunity; winning a prize is not the same as selection for the IFPC Increment 2 effort.
- The Army’s FY2027 focus on connecting prototypes with procurement and fielding paths makes transition plans and acquisition viability relevant to companies pursuing Army innovation funding.
- Up to four prizes of **$1 million each** are planned for the 2026 AUSA conference, creating a near-term opportunity for eligible technology developers.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Grants & Funding
**Published:** October 09, 2026

### Government Entities
- U.S. Army (Army)
- Army FUZE (FUZE)

### Vendors
- Lockheed Martin (Selected bidder advancing to phase two of the IFPC Increment 2 competition)
- Boeing (Member of a team selected to advance to phase two of the IFPC Increment 2 competition)
- Anduril (Member of a team selected to advance to phase two of the IFPC Increment 2 competition)

### Key Quotes
> A lot of what we’ll see in FY27 is leveraging mechanisms within the Army FUZE portfolio to address bigger Army acquisition problems, and I think again this demonstrates that the Army recognizes we need to diversify the defense industrial base.
> — Matt Willis, Director of Army FUZE

### Sources
- [One year in, Army’s FUZE leader eyes 'bigger' acquisition challenges - Breaking Defense](https://breakingdefense.com/2026/10/one-year-in-armys-fuze-leader-eyes-bigger-acquisition-challenges) - Breaking Defense