Army’s Ambitious Drone Acquisition Plan: Opportunities for Small Businesses
In an exciting development for the defense industry, U.S. Army Secretary Christine Wormuth has announced plans to procure a staggering one million drones over the next two to three years. This emerging strategy aims to significantly enhance the Army’s operational capabilities and modernize its equipment. But what does this mean for small businesses looking to get involved with government contracts?
Major Drone Manufacturers to Look Out for:
Xtend ACQME-DK Kits
- Type: Affordable Close Quarter Modular Effects FPV Drone Kits
- Features:
- Modular VTOL design with lethal and non-lethal payload options
- AI-enabled swarm control (one operator can command multiple drones)
- Dual communications (fiber optic + hardened RF) for anti-jamming
- GNSS-denied environment capability
- Purpose: Precision strike and survivability in urban and rural combat zones
- Contract Value: Multi-million-dollar fixed-price deal
- Supplier: Xtend Reality Inc., Tampa, FL
Red Cat FANG FPV Drone
- Type: FPV drone system for defense and security operations
- Features:
- Blue UAS Cleared List certification (NDAA-compliant)
- Modular design for ISR and tactical missions
- Fully vetted for cybersecurity and supply chain integrity
- Purpose: Tactical reconnaissance and FPV operations
- Supplier: Red Cat Holdings, Inc.
X-BAT (Shield AI)
- Manufacturer: Shield AI
- Capabilities: AI-piloted, vertical takeoff and landing (VTOL), fighter-class performance, powered by GE Aerospace’s F110-GE-129 engine with thrust vectoring. Designed for contested environments and runway-free operations.
- Status in 2025:
- Unveiled in October 2025 at a Washington event.
- Development partnership with GE Aerospace announced in November 2025.
- First flight expected in 2026, production targeted for 2029.
- Contracts: No confirmed DoW procurement in 2025; X-BAT is still in development and not yet fielded.
Anduril Fury
- Manufacturer: Anduril Industries
- Key Programs in 2025:
- Roadrunner Interceptor: Pentagon awarded Anduril a $250M contract for 500 reusable air-defense drones in March 2025.
- Counter-UAS Systems: Anduril won a $642M Navy/Marine Corps contract to deliver and sustain counter-drone systems through 2035.
- Collaborative Combat Aircraft (CCA): Anduril is developing jet-powered drones with Rheinmetall for the Air Force and Navy under prototype contracts; first flight occurred in late 2025 with drone called fury using commercial components.
- Status: Active contracts for counter-drone and interceptor systems, but no public record of DoW purchasing Anduril’s offensive drones for direct deployment in 2025.
Understanding the Drone Acquisition Strategy
The Army’s drive to acquire a large number of drones isn’t just about quantity; it’s about improving efficiency and adaptability in modern warfare. Drones have become an integral part of military operations, providing reconnaissance, strategic advantages, and even combat capabilities. The Secretary of the Army emphasized that this move intends to leverage cutting-edge technology to keep the U.S. military at the forefront of defense capabilities.
What This Means for Small Businesses
For small businesses, especially those owned by veterans, women, and minorities, this shift in military procurement creates substantial opportunities. Government contracts can provide a stable revenue stream, promote growth, and foster innovation among SMBs. Drones need parts like motors, propellors as well as maintenance, pilot instructors and more. How can you become a part of that supply chain?
As you consider entering this market, it’s crucial to understand the landscape of government contracting and how to navigate it effectively. Here’s how we can assist:
1. Navigating Government Programs: We specialize in helping businesses tap into programs like 8(a), VOSB (Veteran-Owned Small Business), SDVOSB (Service-Disabled Veteran-Owned Small Business), and HUBZone certifications. Leveraging these programs can enhance your qualifications and increase your chances of winning lucrative contracts.
2. Insight on Procurement Processes: Understanding how the military contracts for drones will be key to positioning your company effectively. Our resources outline the steps and specifics you need to know to craft compelling proposals and responses to bids. You can find more detailed insights on our Government Contracting page.
3. Networking Opportunities: We bring together small businesses and government agencies, offering networking opportunities that can lead to partnerships and collaborations. Engaging with other businesses in the defense sector can open doors that purely operating in isolation may not.
4. Continuous Education: We provide informative content and webinars that help demystify the contracting process. Understanding terms and regulations is vital and our articles is a great place to start.
5. Support with Bids and Proposals: Completing successful bids is often a hurdle for small businesses. With tailored support from our team, you can improve your proposal strategies, thus enhancing your competitive edge.
The Growing Demand for Drones
The Army’s announcement not only highlights a transformative shift in military strategy but also indicates a growing demand for advanced technologies. According to a recent report from Markets and Markets, the global drone market is expected to grow at a compound annual growth rate (CAGR) of over 20% by 2025, emphasizing the expansion of this sector and the potential for relevant suppliers in the market.
For small businesses considering government contracting, this may be the ideal moment to dive in. By providing innovative drone solutions, maintenance services, and support products, you could align perfectly with the Army’s needs. Understanding the nuances of the drone market will be vital as businesses pitch their services to meet these anticipated demands.
Free VOSB Certification For Veteran-Owned Businesses in November
Best Practices for Engaging with the Government
1. Engage Early: Don’t wait until the bid announcements are made. Start establishing relationships with decision-makers and understand their needs now.
2. Stay Informed: Regularly check government websites and platforms such as SAM (System for Award Management) and GSA (General Services Administration) for updates on contracts that suit your business.
3. Build Your Expertise: Continuous improvement and training in areas related to drone technology can position your business as a capable partner. Leverage our educational resources on small business growth to add value to your offerings.
Conclusion: Seize the Opportunity
The next couple of years present an exceptional opportunity for small businesses poised to enter the government contracting arena. The Army’s plan to buy one million drones is not just a procurement exercise; it’s a chance for innovative companies to come forward, offer unique solutions, and participate in shaping the future of military operations.
By engaging with the right resources, understanding government programs, and remaining proactive in outreach, small businesses can not only survive but thrive in this evolving landscape. Focus on building connections and enhancing your capabilities to align with this monumental shift in defense procurement. Check out our resources at Select GCR for more guidance and information.
Sources:
– Government Contracting Insights
– Military Drone Market Overview
Embrace this chance and enhance your business capabilities by getting involved in government operations!
