DoD awards $7.9M for V-BAT VTOL Unmanned Aircraft to Shield AI Inc

Contract Overview

Contract Amount: $7,924,111 ($7.9M)

Contractor: Shield AI Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-03

End Date: 2026-03-15

Contract Duration: 193 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: V-BAT VTOL UNMANNED AIRCRAFT

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $7.9 million to SHIELD AI INC for work described as: V-BAT VTOL UNMANNED AIRCRAFT Key points: 1. Contract awarded for unmanned aircraft systems, indicating a focus on advanced aerial capabilities. 2. The fixed-price contract type suggests a clear scope and predictable costs for the government. 3. Awarded to Shield AI Inc., a company specializing in artificial intelligence for defense applications. 4. The contract duration of approximately 193 days points to a focused, short-term delivery requirement. 5. The specific product classification relates to ammunition manufacturing, suggesting potential integration or support roles for the aircraft. 6. This award represents a strategic investment in unmanned aerial systems for defense operations.

Value Assessment

Rating: good

The contract value of $7.9 million for V-BAT VTOL Unmanned Aircraft appears reasonable given the specialized nature of the technology. Benchmarking against similar advanced drone procurements is challenging due to the unique capabilities of VTOL systems and AI integration. However, the firm fixed-price structure provides cost certainty. Further analysis would require comparing the specific features and performance metrics of the V-BAT system against other available unmanned aerial platforms in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for these types of unmanned aerial systems. This process is designed to ensure the government receives competitive pricing and the best value by allowing all qualified sources to participate.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging innovation among a wider range of suppliers.

Public Impact

The Department of Defense is the primary beneficiary, acquiring advanced unmanned aerial capabilities. The contract will deliver V-BAT VTOL Unmanned Aircraft, enhancing reconnaissance, surveillance, and potentially other operational missions. The geographic impact is likely focused on operational theaters where the DoD deploys these systems. Workforce implications may include specialized training for operators and maintenance personnel, as well as potential demand for AI and aerospace engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the V-BAT system becomes a standard and difficult to replace.
Dependence on a single contractor for specialized AI integration could pose supply chain risks.
The specific application within ammunition manufacturing needs further clarification to assess full operational impact.

Positive Signals

Award to a company specializing in AI for defense suggests cutting-edge technology integration.
The use of VTOL technology offers operational flexibility in diverse environments.
Firm fixed-price contract provides cost predictability for the government.

Sector Analysis

The defense sector is increasingly investing in unmanned aerial systems (UAS) and artificial intelligence to maintain technological superiority. The market for advanced drones, particularly those with vertical take-off and landing (VTOL) capabilities and AI integration, is rapidly growing. This contract fits within the broader trend of modernizing military assets with autonomous and intelligent systems. Comparable spending benchmarks would involve looking at other procurements of specialized drones for ISR (Intelligence, Surveillance, and Reconnaissance) or tactical support roles.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of advanced AI-integrated unmanned aircraft, the primary contractor, Shield AI Inc., is likely a mid-to-large-sized business. There is no explicit information regarding subcontracting plans for small businesses, which could be an area for future inquiry to ensure opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are embedded within the firm fixed-price contract structure, which incentivizes the contractor to meet delivery schedules and quality standards. Transparency is facilitated through contract award databases, though specific performance metrics are typically not publicly disclosed.

Related Government Programs

Unmanned Aerial Systems (UAS) Procurement
Artificial Intelligence in Defense
Advanced Aerial Platforms
Defense Technology Modernization
Tactical Drones

Risk Flags

Technology Integration Risk
Performance Reliability
Delivery Schedule Adherence
AI System Efficacy

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.9 million to SHIELD AI INC. V-BAT VTOL UNMANNED AIRCRAFT

Who is the contractor on this award?

The obligated recipient is SHIELD AI INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2025-09-03. End: 2026-03-15.

What is Shield AI Inc.'s track record with similar unmanned aerial system contracts for the Department of Defense?

Shield AI Inc. is known for its focus on artificial intelligence for defense applications, particularly in autonomous flight systems. While specific contract details for V-BAT VTOL systems may not be widely publicized, the company has been involved in developing AI for drones, including efforts related to swarm technology and autonomous navigation. Their track record suggests a strong capability in AI integration for aerial platforms. However, a comprehensive review would require examining their past performance on DoD contracts, including any awards for similar unmanned aircraft systems, and assessing their delivery history, quality, and adherence to budget on those prior engagements. Publicly available data on their specific DoD contract history is limited, necessitating a deeper dive into contract databases and performance reports.

How does the $7.9 million award for V-BAT VTOL Unmanned Aircraft compare to market rates for similar systems?

Benchmarking the $7.9 million award for V-BAT VTOL Unmanned Aircraft against market rates is complex due to the specialized nature of AI-integrated, VTOL systems. The value is influenced by factors such as payload capacity, flight endurance, sensor suites, AI capabilities, and the level of autonomy. While exact comparisons are difficult without detailed specifications, the price point suggests a significant investment in advanced technology. The market for high-end military-grade drones can range from hundreds of thousands to millions of dollars per unit, depending on customization and capabilities. The firm fixed-price nature of this contract implies that the government has negotiated a specific price for a defined set of capabilities, aiming for value within that scope.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential technical challenges in integrating AI with the V-BAT VTOL system, ensuring reliable performance in operational environments, and the possibility of cost overruns if unforeseen issues arise, despite the fixed-price structure. There's also a risk related to the contractor's ability to deliver within the specified timeframe. Mitigation strategies likely involve rigorous testing and validation protocols overseen by the Defense Contract Management Agency (DCMA), clear performance metrics defined in the contract, and potentially phased deliveries with acceptance criteria. The choice of a firm fixed-price contract itself is a risk mitigation tool, placing the cost burden on the contractor for any overruns beyond the agreed price, provided the scope remains unchanged.

What is the expected effectiveness of the V-BAT VTOL Unmanned Aircraft in supporting DoD missions?

The V-BAT VTOL Unmanned Aircraft is expected to enhance DoD missions by providing flexible aerial reconnaissance, surveillance, and potentially strike capabilities. Its vertical take-off and landing (VTOL) feature allows for operation from a wider range of locations, including confined spaces or naval vessels, without requiring a runway. The integration of AI suggests advanced autonomous capabilities, potentially enabling faster decision-making, improved target identification, and reduced operator workload. This technology can significantly improve situational awareness, provide real-time intelligence, and offer a persistent presence over target areas, thereby increasing mission effectiveness and reducing risk to manned platforms.

How does this contract align with historical spending patterns for unmanned aerial systems within the Department of Defense?

This contract aligns with a broader historical trend of increasing DoD investment in unmanned aerial systems (UAS). Over the past two decades, the DoD has consistently expanded its reliance on drones for various roles, from intelligence gathering to combat operations. Spending in this category has grown significantly as technology has advanced, leading to more sophisticated and capable platforms. The procurement of AI-integrated VTOL systems like the V-BAT represents a continuation and evolution of this trend, focusing on next-generation capabilities that offer greater autonomy and operational flexibility compared to earlier generations of UAS. This $7.9 million award is a component of a much larger, ongoing strategic shift towards unmanned and autonomous systems in military operations.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 W BROADWAY STE 250, SAN DIEGO, CA, 92101

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

Financial Breakdown

Contract Ceiling: $7,924,111

Exercised Options: $7,924,111

Current Obligation: $7,924,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865621DA045

IDV Type: IDC

Timeline