Agriculture awards $224K for UAS and accessories to Skydio, Inc., with a 92-day delivery timeline

Contract Overview

Contract Amount: $224,468 ($224.5K)

Contractor: Skydio, Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-12

End Date: 2026-07-13

Contract Duration: 92 days

Daily Burn Rate: $2.4K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER FOR UAS AND ACCESSORIES

Place of Performance

Location: SAN MATEO, SAN MATEO County, CALIFORNIA, 94402

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $224,467.5 to SKYDIO, INC for work described as: DELIVERY ORDER FOR UAS AND ACCESSORIES Key points: 1. The contract value is modest, suggesting a focused scope for Unmanned Aerial Systems (UAS) and accessories. 2. Competition dynamics for this specific delivery order are not detailed, but the contract type indicates a competitive process. 3. The short duration of 92 days implies a time-sensitive need for the UAS and accessories. 4. The use of UAS by the Animal and Plant Health Inspection Service (APHIS) likely supports agricultural monitoring, pest control, or environmental surveying. 5. The contract is a delivery order under a larger agreement, indicating a pre-established relationship or framework. 6. The fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable expenses for the government.

Value Assessment

Rating: good

The contract value of $224,467.50 for UAS and accessories appears reasonable for a specialized delivery order with a short performance period. Without specific details on the exact UAS models and accessories, a direct comparison is challenging. However, the firm-fixed-price structure suggests that the government has secured a defined cost for the specified deliverables. The benchmark of $224K for a 92-day delivery of advanced drone technology and related items seems within a typical range for government procurement of such specialized equipment, especially considering potential research, development, or customization costs that might be amortized over a larger contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for full and open competition for purchases below certain thresholds. While the specific number of bidders is not provided, SAP is designed to encourage broad participation. This competitive approach is intended to ensure fair pricing and access to a range of qualified vendors. The use of SAP suggests that the agency sought to leverage market competition to obtain the best value for these UAS and accessories.

Taxpayer Impact: Competing this contract under SAP likely resulted in a more favorable price for taxpayers by allowing multiple vendors to bid, driving down costs through market forces.

Public Impact

The Animal and Plant Health Inspection Service (APHIS) is the primary beneficiary, likely using the UAS for critical missions. Services delivered include the provision of Unmanned Aerial Systems (UAS) and associated accessories. The geographic impact is likely focused on areas where APHIS operates, potentially nationwide for agricultural and environmental monitoring. Workforce implications may involve training for personnel to operate and maintain the new UAS equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Skydio's proprietary technology is heavily integrated.
Dependence on a single vendor for future maintenance, upgrades, or additional accessories.
Risk of obsolescence if the UAS technology rapidly advances beyond the procured models.
Limited transparency on the specific performance metrics or operational success of the UAS post-delivery.

Positive Signals

Skydio is a recognized leader in autonomous drone technology, suggesting a high-quality product.
The firm-fixed-price contract provides cost certainty for the government.
The competitive award process indicates that value for money was considered.
The short delivery timeline suggests the agency has a clear and immediate need, implying efficient procurement.

Sector Analysis

The Unmanned Aerial Systems (UAS) market is a rapidly growing sector within aerospace and defense, with increasing applications in civilian government operations. This contract falls within the broader category of aircraft manufacturing and related services. The market is characterized by rapid technological advancements, with companies like Skydio focusing on autonomous capabilities. Government spending in this area is driven by the need for enhanced surveillance, data collection, and operational efficiency across various agencies. Comparable spending benchmarks would depend heavily on the specific capabilities and payload of the UAS, but this $224K award represents a focused investment for a specific operational need.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of advanced UAS technology, it is possible that larger, specialized firms like Skydio are the primary providers. Further analysis would be needed to determine if small businesses were involved in the supply chain or if subcontracting opportunities were made available.

Oversight & Accountability

As a delivery order under a larger contract vehicle, oversight would likely be managed through the terms of that parent contract. The Department of Agriculture's contracting officers are responsible for ensuring performance and compliance. Transparency is facilitated by public contract databases, but detailed operational oversight and inspector general jurisdiction would depend on the specific nature of the UAS deployment and any associated risks or performance issues that may arise.

Related Government Programs

Department of Agriculture UAS Procurement
Animal and Plant Health Inspection Service Technology Investments
Federal Drone and Unmanned Systems Contracts
Simplified Acquisition Procedures for Specialized Equipment

Risk Flags

Short contract duration may limit thorough testing or integration.
Reliance on a single vendor for specialized technology.
Potential for rapid technological obsolescence in the UAS market.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $224,467.5 to SKYDIO, INC. DELIVERY ORDER FOR UAS AND ACCESSORIES

Who is the contractor on this award?

The obligated recipient is SKYDIO, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $224,467.5.

What is the period of performance?

Start: 2026-04-12. End: 2026-07-13.

What specific models of UAS and accessories were procured under this delivery order, and what are their intended applications for APHIS?

The provided data does not specify the exact models of Unmanned Aerial Systems (UAS) and accessories. However, given that the awardee is Skydio, Inc., it is highly probable that the procured items are Skydio's autonomous drone systems, known for their advanced obstacle avoidance and AI-driven capabilities. APHIS (Animal and Plant Health Inspection Service) utilizes UAS for a variety of missions, including but not limited to, wildlife monitoring, agricultural pest detection and mapping, border surveillance, environmental assessment, and disaster response. The specific accessories could include specialized sensors (e.g., thermal, multispectral), additional batteries, charging stations, ruggedized cases, or advanced controllers tailored to these operational needs. The short delivery timeline suggests these are likely for immediate deployment in ongoing or upcoming field operations.

How does the $224,467.50 contract value compare to typical government spending on similar UAS and accessories from Skydio or competitors?

The contract value of $224,467.50 for UAS and accessories from Skydio, Inc. appears to be on the lower to mid-range for a government procurement of advanced autonomous drone systems. Skydio's enterprise solutions, especially when bundled with accessories, sensors, and support, can range significantly. Larger agency-wide procurements or contracts involving extensive training and integration can easily reach millions of dollars. However, for a specific delivery order focused on a limited number of units and accessories with a short 92-day delivery window, this amount is plausible. Competitors offering similar autonomous capabilities might have comparable pricing structures, but the final price is heavily influenced by the specific configuration, quantity, and any negotiated discounts. Without knowing the exact number and type of UAS and accessories, a precise benchmark is difficult, but it suggests a targeted acquisition rather than a broad deployment.

What are the potential risks associated with procuring UAS technology, and how might they be mitigated in this contract?

Procuring UAS technology carries several potential risks, including rapid technological obsolescence, cybersecurity vulnerabilities, data privacy concerns, and potential for misuse. Technological obsolescence is a significant risk given the fast pace of innovation in drone technology. This contract's short duration and fixed-price nature might mitigate some financial risk, but it doesn't prevent the technology from becoming outdated quickly. Cybersecurity is paramount; Skydio emphasizes secure, US-based operations, which is a positive signal. However, ongoing vigilance and robust security protocols are essential. Data privacy and misuse risks are managed through agency policies and regulations governing data collection and handling. The fixed-price contract shifts some financial risk to Skydio, but the government bears the risk of acquiring technology that may not meet future needs or could be superseded rapidly.

What is Skydio, Inc.'s track record with federal government contracts, particularly for UAS?

Skydio, Inc. has a growing track record with the U.S. federal government, increasingly securing contracts for its autonomous drone systems across various agencies. They are known for their focus on secure, domestic manufacturing and AI-driven autonomous flight capabilities, which appeal to government requirements for reliable and secure aerial platforms. Agencies such as the Department of Defense (including branches like the Army and Marines), Department of Homeland Security, and various civilian agencies have utilized Skydio drones for intelligence, surveillance, reconnaissance (ISR), situational awareness, and inspection tasks. Their presence in the federal market has expanded significantly in recent years, indicating a positive reception and growing trust in their technology and ability to meet government procurement standards. This contract with the Department of Agriculture aligns with this trend.

How does this contract fit into the broader spending patterns for UAS within the Department of Agriculture or similar agencies?

This $224K delivery order represents a relatively small, targeted investment within the broader context of federal UAS spending. The Department of Agriculture (USDA), through agencies like APHIS, has been increasingly adopting UAS to enhance its operational capabilities in areas such as crop monitoring, pest management, environmental surveying, and wildlife tracking. While larger agencies like the Department of Defense might have multi-million dollar UAS programs, USDA's spending tends to be more focused on specific applications relevant to its mission. This contract likely supports a particular project or operational need within APHIS, rather than indicating a large-scale, agency-wide drone acquisition. It reflects a growing trend across government agencies to leverage drone technology for efficiency and data collection, albeit at varying scales depending on the agency's specific requirements and budget.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12639525Q0019

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3000 CLEARVIEW WAY BLDG E, SAN MATEO, CA, 94402

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $224,458

Exercised Options: $224,458

Current Obligation: $224,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12639525D0008

IDV Type: IDC

Timeline