# DoD Expands Low-Cost Drone Procurement

The Department of Defense’s Drone Dominance program is planning roughly $1.1 billion in purchases of low-cost, U.S.-manufactured drones and targets about 250,000 systems by the end of 2027. Procurement is proceeding through competitive Gauntlets, with the signals citing first-phase awards, a Phase III solicitation, and separate orders for reusable bomber drones. U.S. manufacturers face production-scaling, component-sourcing, and technology-refresh challenges, while future funding remains subject to congressional approval.

- The Phase III solicitation closed October 12, 2026; Gauntlet III testing is expected in March. Companies should assess whether they can meet the program’s domestic-sourcing and Blue UAS requirements and supply components such as motors, batteries, cameras, and radios.
- The signals identify an Army award to Neros of up to $500 million and expected initial Gauntlet 2.5 orders of about $32 million, alongside the broader program. These opportunities indicate demand for both complete drone systems and supporting components.
- The Gauntlet 2.5 demonstration was pushed to early November 2026, a window that has arrived as of November 7. The Defense R&D Summit is scheduled for February 4, 2027, and is identified as a networking opportunity focused on resilient communications and autonomous systems.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Grants & Funding, Artificial Intelligence
**Published:** November 06, 2026

### Government Entities
- U.S. Department of Defense (DoD)
- U.S. Army (Army)
- Defense Innovation Unit (DIU)

### Vendors
- Vector Defense Inc. (awardee)
- Neros Inc. (awardee)

### Key Quotes
> If we are in a major combat scenario, we need to make a million a month.
> — Trent Emeneker, retired Marine aviator

### Sources
- [Us Starts at ‘Basically Zero’ in Building Cheap Military Drones | Aviation Pros](https://www.aviationpros.com/aircraft-maintenance-technology/aircraft-technology/defense/news/55416532/us-starts-at-basically-zero-in-building-cheap-military-drones) - Aviation Pros
- [DOW Drones 101: What GovCon Needs To Know](https://www.potomacofficersclub.com/articles/drones-unmanned-aircraft-system-uas-dow-faq-ew-logistics-isr) - Potomac Officers Club