The U.S. Department of War has awarded AeroVironment Inc. (NASDAQ:AVAV) a $117.3 million contract to supply unmanned aircraft systems to the Army, the Pentagon announced Wednesday.
Under the firm-fixed-price agreement, AeroVironment will procure and deliver 82 P550 unmanned aircraft systems. According to the Pentagon notice, the systems are intended to provide reconnaissance, surveillance and target acquisition capabilities to battalion commanders and their subordinate organizations.
The Army publicly solicited bids online and received 10 proposals for the requirement. The announcement states that work related to the contract will be performed at locations to be determined. The contract carries an estimated completion date of July 23, 2026.
Details on fiscal year funding and the specific fund type for each order will be determined on a per-order basis, the Pentagon said. The contracting activity for the award is Army Contracting Command at Redstone Arsenal, Alabama. The award is recorded under contract numbers W58RGZ-26-G-0005 and W58RGZ-26-F-0334.
AeroVironment is headquartered in Simi Valley, California.
Contextual notes for readers - The contract is described as firm-fixed-price and explicitly covers procurement and delivery of the 82 P550 systems. The stated mission roles for the systems are reconnaissance, surveillance and target acquisition for battalion commanders and their organizations. The procurement process drew 10 proposals via an online solicitation, and certain execution details - including exact work locations and fiscal year funding lines - remain to be finalized. The Pentagon lists an estimated completion date of July 23, 2026 for performance under the award.