Army awards $7.46M for low altitude stalking and strike ordnance to AeroVIRONMENT, Inc
Contract Overview
Contract Amount: $7,465,457 ($7.5M)
Contractor: Aerovironment, Inc
Awarding Agency: Department of Defense
Start Date: 2025-07-08
End Date: 2026-04-16
Contract Duration: 282 days
Daily Burn Rate: $26.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOW ALTITUDE STALKING AND STRIKE ORDNANCE - DELIVERY ORDER 6
Place of Performance
Location: SIMI VALLEY, VENTURA County, CALIFORNIA, 93065
Plain-Language Summary
Department of Defense obligated $7.5 million to AEROVIRONMENT, INC for work described as: LOW ALTITUDE STALKING AND STRIKE ORDNANCE - DELIVERY ORDER 6 Key points: 1. AeroVIRONMENT, Inc. secures a significant contract for specialized ordnance. 2. The contract focuses on aircraft manufacturing, specifically for drone-based strike capabilities. 3. Potential risks include reliance on a single supplier and the evolving nature of drone warfare technology. 4. The defense sector continues to invest heavily in advanced unmanned aerial systems and munitions.
Value Assessment
Rating: good
The contract value of $7.46 million appears reasonable for specialized drone ordnance. Benchmarking against similar, albeit less specific, aircraft manufacturing contracts suggests fair pricing, though direct comparisons are difficult due to the unique nature of the product.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited source justification. The lack of competition may limit price discovery and potentially lead to higher costs than if multiple vendors were involved.
Taxpayer Impact: Taxpayer funds are being used for advanced defense capabilities. While the specific amount is not excessive, the lack of competition warrants scrutiny to ensure value for money.
Public Impact
Enhances military capabilities for reconnaissance and strike missions. Supports the development and deployment of advanced drone technology. Potential implications for future defense procurement strategies regarding unmanned systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for sole-source pricing
- Reliance on specific technology
Positive Signals
- Addresses critical defense need
- Supports advanced manufacturing
- Clear delivery timeline
Sector Analysis
The defense sector is heavily investing in unmanned aerial systems (UAS) and associated munitions. Spending benchmarks for similar specialized ordnance can vary widely, but this contract falls within expected ranges for advanced military hardware.
Small Business Impact
This contract was awarded to AeroVIRONMENT, Inc., a large business. There is no indication of small business participation in this specific delivery order, which is common for highly specialized defense contracts.
Oversight & Accountability
Oversight will be crucial to ensure the effective use of funds and the successful delivery of the ordnance. The Department of the Army's contracting office is responsible for monitoring performance and compliance.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of full and open competition
- Potential for cost overruns due to limited competition
- Dependence on a single supplier for critical ordnance
- Evolving technology may render ordnance obsolete quickly
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.5 million to AEROVIRONMENT, INC. LOW ALTITUDE STALKING AND STRIKE ORDNANCE - DELIVERY ORDER 6
Who is the contractor on this award?
The obligated recipient is AEROVIRONMENT, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $7.5 million.
What is the period of performance?
Start: 2025-07-08. End: 2026-04-16.
What is the specific technological advantage this ordnance provides over existing solutions?
The ordnance is designed for 'low altitude stalking and strike,' implying advanced capabilities for precision targeting and engagement from low-flying platforms, likely drones. This suggests improvements in stealth, maneuverability, or payload effectiveness compared to legacy systems, enabling more covert and precise mission execution.
What are the long-term cost implications of procuring specialized ordnance through limited competition?
Procuring specialized ordnance through limited competition can lead to higher unit costs due to the absence of competitive pressure. Over the long term, this could result in increased overall program expenses. Agencies should periodically reassess the market for potential competition or explore alternative solutions to mitigate sustained cost increases.
How does this procurement align with the Army's broader strategy for drone warfare and autonomous systems?
This procurement directly supports the Army's modernization efforts in unmanned systems and autonomous capabilities. By acquiring advanced ordnance for low-altitude strike missions, the Army enhances its ability to conduct persistent surveillance and engage targets effectively with unmanned platforms, aligning with strategic goals for future battlefield dominance.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 900, INNOVATORS WAY, SIMI VALLEY, CA, 93065
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,465,457
Exercised Options: $7,465,457
Current Obligation: $7,465,457
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB24D0011
IDV Type: IDC
Timeline
Start Date: 2025-07-08
Current End Date: 2026-04-16
Potential End Date: 2026-04-16 00:00:00
Last Modified: 2025-12-16
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