- DIU has opened a competition for affordable aerial ISR platforms
- Up to $250 million set aside for development and production
- The 2027 Defense R&D Summit will explore unmanned systems, AI and more
The Defense Innovation Unit has launched a $100 million prize challenge to identify affordable unmanned aerial systems and other platforms that can support intelligence, surveillance and reconnaissance, or ISR, missions for the Department of War across land, littoral and maritime environments.
DIU’s search for affordable, mature ISR aircraft reflects the DOW’s continued focus on unmanned systems and autonomy. Defense officials and industry leaders will examine these and other emerging capabilities, including trusted artificial intelligence, quantum computing, next-generation wireless networks and advanced space technologies at the Potomac Officers Club’s 2027 Defense R&D Summit on Feb. 4. Sign up now to learn where defense research and development investments are headed.
DIU said Tuesday the Low Cost ISR, or LC-ISR, competition is open to both U.S. and international companies, which may apply on their own or through teams, partnerships or joint ventures.
Submissions are due Oct. 14.
What Is the LC-ISR Prize Challenge?
The competition seeks medium- and long-endurance platforms that can gather multi-intelligence sensor data and relay it in real time to inform operational and targeting decisions. DIU said existing ISR systems often depend on vulnerable airfields, require large crews and cost too much to field in large numbers, which limits their use in contested areas.
DIU is looking for proven, mature systems rather than early-stage concepts, with preference for platforms that can launch and recover from expeditionary sites.
The challenge includes $100 million in combined prizes and initial follow-on funding. The DOW has also budgeted up to $250 million for further development, system improvements, production and theater integration, depending on government needs and program execution.
DIU may use the challenge results to award prototype other transaction agreements, follow-on production contracts or experimental procurements without additional competition.
What Attributes Is DIU Seeking?
DIU listed the following primary attributes:
- Air vehicles should offer medium endurance of three to 12-plus hours or long endurance of 12 to 24-plus hours.
- Systems should operate reliably in dust, water, shock and other harsh conditions.
- Platforms should support expeditionary operations, including refueling and generating repeat missions from austere sites with little dependence on runways or fixed facilities.
- Aircraft should carry and power single or multi-intelligence payloads, such as electro-optical/infrared, synthetic aperture radar and signals intelligence sensors.
- Solutions should deliver maximum mission coverage at the lowest total lifecycle cost through government ownership, ISR-as-a-service or other business models.
Secondary attributes include third-party command-and-control integration, autonomy features that reduce operator workload, a modular open systems approach, transportability by truck or helicopter, launch within three hours of offload and operation beyond visual line of sight in communications- and navigation-degraded environments.
What Is the Timeline for the Challenge?
DIU released the solicitation Tuesday and will accept submissions through Oct. 14. Companies must submit a pitch deck of up to 15 slides, a rough order-of-magnitude cost estimate and a production plan.
DIU expects to notify selected pitch participants in November and hold pitch sessions in November or December. The agency plans to notify fly-off participants by Dec. 17.
The first fly-off is scheduled for the early second quarter of fiscal year 2027, and companies that demonstrate their systems successfully will receive an initial $250,000 prize. A second fly-off, planned for the third quarter of FY 2027, will give companies more preparation time and award $50,000 to successful participants. Winners of both events may qualify for additional prizes or agreements. DIU said all dates are tentative.
How Will DIU Evaluate Submissions?
DIU will assess proposals and fly-off results on sensor and flight performance, expeditionary footprint, cost, payload modularity, open architecture, autonomy, command and control in contested environments, reliability, environmental suitability, manufacturing readiness, and future business models.
The agency will judge cost by the mission effect delivered per dollar of total lifecycle cost and may favor lower-cost systems that can be fielded in greater numbers over higher-performing options with higher price tags.
What Other Prize Challenges Has DIU Launched?
The LC-ISR challenge joins a series of DIU prize competitions aimed at sourcing commercial technology for the joint force. In January, DIU, the Defense Autonomous Warfare Group and the U.S. Navy launched a prize challenge offering up to $100 million to develop an Autonomous Vehicle Orchestrator prototype designed to help commanders task and coordinate large numbers of autonomous systems across domains.
In July, the agency opened the $5 million Specular MIST Prize Challenge to identify maritime payload technologies for manned and unmanned surface vessels, working with the Department of the Navy Rapid Capabilities Office and Naval Information Warfare Center Pacific. DIU followed with the Ground-Based Affordable Mass Prize Challenge, which seeks low-cost, long-range precision strike systems and has up to $250 million set aside for the prize and follow-on work.
The agency then opened a $100 million challenge for drone-carrying unmanned surface vessels, with each entry required to pair a mature USV with at least two strike-capable drones and a separate $200 million reserved for follow-on prototyping or production deals.
Beyond prize challenges, DIU is seeking private capital firms that invest in technologies designed to counter unmanned systems in maritime environments. The request is part of DIU’s Bridge Program under the Classified Access to Address Critical Technology solicitation, which aims to expand the pool of nontraditional defense contractors capable of meeting operational requirements involving classified information.
