Overview of Contracts#
Aerovironment Inc., a company based in Simi Valley, California, has been awarded two contracts by the U.S. Army, amounting to approximately $135 million. This announcement was made by the Department of Defense on March 12, 2026.
Details of the Larger Contract#
The first and larger contract is valued at $117,306,232. It involves the procurement and delivery of P550 Long Range Reconnaissance systems. This contract is a firm-fixed-price agreement, meaning the price is set and will not change regardless of the costs incurred during the project. The Army Contracting Command, located in Redstone Arsenal, Alabama, awarded this contract, which is expected to be completed by July 23, 2026.
Second Contract Specifications#
The second contract is worth $17,583,318 and focuses on providing Red Dragon systems along with essential equipment such as battery chargers, ground control stations, launchers, and training materials. This contract also includes support from field service representatives. The Army received only one bid for this contract, which was solicited online. Its estimated completion date is April 8, 2026.
Contracting Activity#
Both contracts will determine specific work locations and funding based on individual orders. The Army Contracting Command in Redstone Arsenal is responsible for overseeing both agreements, which are identified by the contracting activity numbers W58RGZ-26-F-0238 and W58RGZ-26-F-0206. This structured approach ensures that all aspects of the contracts are managed effectively.