Prize Challenge 

 Low Cost ISR (LC-ISR)

Background and Problem: 

The joint force needs inexpensive and capable aerial Intelligence, Surveillance, and Reconnaissance (ISR) solutions to provide decision and targeting quality data across land, littoral, and maritime environments. Current ISR solutions are often tethered to vulnerable airfields and infrastructure, have large manning requirements, and are too expensive to widely proliferate. Additionally, the exquisite nature, low manufacturing throughput, and high cost of legacy systems hinders their employment in contested areas – the very areas they are often most needed. As such, the Department of War often struggles to meet its aggregate ISR demands in support of the joint force. 

1. The Challenge 

The Department of War (DoW) seeks both medium and long-endurance Unmanned Aerial Systems (UAS) or other platforms that can collect and transmit multi-intelligence (multi-int) sensor data to support real-time operational and targeting decisions over expansive land, littoral, and maritime regions. The Government seeks mature solutions, not concepts. The most competitive solutions will be capable of launching and recovering from expeditionary locations and will align to the performance and maintenance characteristics listed in the attributes below. The Government seeks to maximize aggregate mission coverage and operational effect at the lowest total lifecycle cost, enabling affordable mass and scalable ISR operations. 

The DoW is interested in both U.S. and non-U.S. capabilities. Companies may submit independently or as part of a team, partnership, or joint venture. This challenge will award a total prize and initial follow-on pool of $100 million. Additionally, the Government has budgeted up to $250M to support further development, system improvement, scaled production, and sustained theater integration. This amount will be based on government needs and program execution.

2. Desired Attributes  

Primary Desired Attributes:

• Endurance: Supports medium-endurance (3-12+ hours) or long-endurance (12-24+ hours) per air vehicle while simultaneously addressing other attributes listed below.
• Ruggedized Performance / Weather Performance and Ingress Protection Rating: Ability to operate under representative and varied weather conditions (dust, water, shock, etc.).
• Expeditionary Operations: Ability to refuel, refit, and generate follow-on sorties from austere locations with minimal reliance on fixed infrastructure, established airports, or prepared runways.
• Payload Capabilities: Ability to carry and power single or multi-int payloads sufficient for providing decision-quality data (e.g., EO/IR, SAR, SIGINT); describe size, weight, and power (SWaP) constraints and payloads currently integrated.
• Cost: Ability to maximize aggregate mission coverage and operational effect at the lowest total lifecycle cost, enabling affordable mass and scalable ISR operations through Government-owned, ISR-as-a-Service, or alternative business models.

Secondary Desired Attributes:

The below characteristics are desired but not required:

• Demonstration or evidence of 3rd party C2 integration, specifically providing a C2 integration technical data package (interface documentation and SDK/API).
• Autonomy and features to reduce operator workload (e.g., automated detection alerting). 
• Implementation of Modular Open Systems Approach (MOSA) that enables integration with Government directed architectures via open, well-documented interfaces in support of future integration with Project AVO (Autonomous Vehicle Orchestrator).
• Transportable via expeditionary means (e.g., truck, military helicopter, etc), standard ISO, or MIL containers/pallets. 
• Plan, set up, and launch within three hours of offload.
• Minimal manpower requirements to support launch, recovery, maintenance, logistics, and operations.
• Solutions that enable the platform to operate beyond visual line of sight and in varied environments (e.g. considerations for SATCOM and RF-contested environments will be viewed favorably). Solutions that enable reliable navigation in GNSS degraded and/or denied environments will be viewed favorably. 
• Ability to communicate sensor data via Government-directed radios and waveforms.

For the fly-off, vendors should be prepared to provide the aircraft and representative sensor payloads. Mission scenarios will consist of various ISR tasks to answer critical information requirements and support targeting of static and mobile surface targets across maritime, littoral, and land environments. The fly-off will include a baseline assessment of maturity, safety, and tactical performance; sensor integration and performance; operations in mission-relevant environments (i.e., both medium and long-endurance and “contested” threat environments); ease of use by/with uniformed personnel; multi-int fusion; and a full mission profile evaluation. 

3. Overview of Evaluation Criteria 

The Government’s focus is on delivering the capabilities below, which represent desired characteristics and areas of Government interest. Unless specifically identified otherwise, they are not individual pass/fail requirements at initial submission. These criteria apply to both evaluation of initial submission and evaluation of the fly-off, as appropriate. Respondents should clearly identify current demonstrated capability vs developmental capability, with supporting evidence. Developmental capabilities are defined as those that will not be available at the time of the fly-off. The Government reserves the right to use additional evaluation criteria in evaluating solution performance and potential. Relevant attributes include but are not exclusive to:

• Sensor Performance: Provide sensor data regarding available sensor modalities (e.g., EO, MWIR, LWIR, SAR, etc.), data quality, data latency, field of regard, field of view, and performance of awareness, detection, tracking, targeting, and/or holding target custody. Describe significant performance tradeoffs and limitations relative to cost and weight. Identify currently integrated sensors separately from those requiring additional integration.
• Flight Performance: Endurance relative to gross take off weight and available payload, altitude, speed, and signature (e.g. acoustic).
• Expeditionary Performance: The complete infrastructure needed (e.g., runways or hangars), total operational and logistics footprint to generate missions (including transportation, emplacement, displacement considerations), and personnel and equipment required to maintain and operate the system.  
• Cost: The DoW seeks solutions that maximize affordable mass and aggregate mission coverage. Solutions will be evaluated on the mission effect achievable per dollar of total lifecycle cost, rather than platform performance alone. The Government may favor lower-cost solutions that provide sufficient mission capability at greater scale over higher-performing solutions whose cost limits the quantity that can be fielded. Total lifecycle cost includes platform, sensors, personnel, operations, and sustainment. The Government also invites companies to propose alternative business models, including “ISR as a service,” full ownership, and other approaches suitable for contested operating environments.
• Payload Modularity: Describe ability to support and integrate with third-party payloads and external C2, fires, and intelligence systems. Identify payload interfaces, SWaP limits and considerations, integration constraints.
• Architecture Design: Describe your system's open, modular architecture. Detail how hardware components and software enable Government or third-party integration of hardware, software, payloads, communications, and mission systems. Identify Government-accessible and proprietary interfaces.
• Autonomy: Describe features that reduce operator workload and enable automated mission execution and workflows. Describe demonstrated vs developmental autonomous behaviors, platform autonomy, potential for collaborative autonomy, and integrations with Government and third party C2UI. Solutions should employ a Modular Open Systems Approach (MOSA) that enables integration with Government directed architectures.
• Command, Control (C2), and Communication in Contested Environments: Provide reliable aircraft/platform command and control and ISR data dissemination as part of LOS and/or BLOS operations. Describe the systems approach for GNSS, communications, and operations in DDIL environments. Describe integrations into Government and third party vendor systems for C2, battle management and information dissemination. Describe demonstrated operation under degraded conditions if available.
• Reliability, Maintainability & Availability: Provide any available reliability, maintenance, availability, and flight-hour evidence.
• Environmental Suitability: Describe alignment to relevant MIL or commercial standards for the system (e.g., IP Rating).
• Manufacturing Readiness: Describe the company's ability, approach, and constraints/risks to producing systems quickly and at scale beyond a prototype.
• Future Business Models: In addition to material solutions, the Government is also interested in exploring “ISR as a Service” and Contractor-Owned/ Contractor-Operated (COCO), Government-Owned/ Contractor Operated (GOCO), and other models, including in contested environments. The Government intends to focus on these service-delivery models in future iterations.

4. Challenge Structure and Timeline

The Challenge will be conducted through a single solicitation with two sequential fly-off opportunities. Vendors may submit multiple solutions across multiple fly-offs and categories. Vendors should clearly identify which fly-off and category they are applying to. Medium and long-endurance solutions will be evaluated during fly-off 1 and fly-off 2. The Government prioritizes rapid delivery of operational ISR capability and will incentivize companies prepared to demonstrate their solutions earlier. All dates are tentative.

• Prize Challenge Announcement/Submissions
  • September 29, 2026: Solicitation release
  • October 14, 2026: Submission window closes
  • November 2026: Selected pitch participants notified
• Pitch Event
  • November or December, 2026: Selected participants present their solutions to the Government.
  • No Later than 17 December, 2026: Participants selected for the fly-offs are notified.
• Fly-Offs (Capability demonstrations)
  • The Government plans to execute two fly-offs, one in early Q2 FY27 and one in Q3 FY27. Location TBD. 
  • Selected participants will be invited to compete in fly-offs consisting of one or more demonstration phases/events to validate system performance aligned against either a medium-endurance or long-endurance ISR mission. 
    • Companies may propose a single platform per submission for either mission category and either fly-off (medium or long-endurance, fly-off 1 or fly-off 2) or one platform addressing multiple fly-offs and categories, as long as this is clearly annotated on page 1 of the solution proposal. Multiple submissions in each category are allowed. **NOTE: Separate solutions should be submitted as separate proposals.
    • It should be clear in the submission what category and fly-off companies are submitting to.
  • Participants will provide the aircraft, payloads, and operational teams. 
  • Companies evaluated as successful in the fly-off will receive cash prizes and/or other agreements annotated below. 
  • The Government reserves the right to limit the number of aircraft and personnel companies bring to the fly-off.
• Fly-Off 1 – Early Q2 FY2027 (Accelerated Demonstration)
  • Companies prepared to demonstrate operational capability in Q2 FY27 may elect to participate in fly-off 1.
  • Participants that successfully demonstrate their solutions will receive an initial $250,000 cash prize and are eligible for additional cash prizes and/or other agreements annotated below in Section 5. 
  • This accelerated demonstration is intended to identify mature capability.
• Fly-Off 2 – Q3 FY2027 (Extended Preparation)
  • Companies requiring additional development, integration, or preparation time may elect to participate in fly-off 2. The Government reserves the right to invite participants from fly-off 1 to participate in fly-off 2. 
  • Participants that successfully demonstrate their solutions will receive a $50,000 cash prize and are eligible for additional cash prizes and/or other agreements annotated below in Section 5. 
  • At any point, the Government reserves the right to request additional information or engagement to support evaluation and progression through the Prize Challenge.

Submission Guidelines and Requirements

What to Submit by October 14, 2026:

• Pitch Deck Format: Horizontal 16:9 widescreen PDF, maximum 15 slides.
• Clearly distinguish:
  • Capability demonstrated today
  • Capability currently undergoing development or integration
  • Projected future capability
• Provide objective evidence supporting key technical and performance claims where available.
• Selected participants may be required to submit additional technical, training, safety, integration, logistics, or demonstration documentation prior to applicable events.
• Should include a ROM. 
  • The Government is also interested in understanding the cost structure and business model associated with each solution and potential use cases for this solution. Vendors should be prepared to provide indicative pricing for individual systems, identify expected unit-cost reductions and other efficiencies at increased production quantities, and describe any alternative full-service offerings, including ‘COCO,’ ISR-as-a-Service, ‘GOCO,’ or other service-based models they might offer.
• Vendors shall provide a production plan to present different potential rates and quantities of production depending on Government needs. Vendors will evidence their ability to reach low rate production quickly. 

5. Prizes, Benefits, and Follow-On 

• Cash Prize Pool and Follow-On: This challenge will award a total prize and initial follow-on pool of $100 million. 
• Submissions received under this Prize Challenge, in accordance with 10 U.S.C. § 4025, constitute a competitive procedure for purposes of potential follow-on actions.
• DIU may use the results of this Prize Challenge to award cash prizes, and/or agreements in accordance with the below without further competitive procedures:
  • 10 U.S.C. § 4022 – Prototype Other Transaction (OT)
  • 10 U.S.C. § 4022(f) – Follow-on Production Contracts or Transactions
  • 10 U.S.C. § 4023 – Procurement for Experimental Purposes
• Additionally, other DoW Agencies, Services, Components, Activities, or alike may utilize the results of this competitive procedure to fund all, some, or none of the capabilities received under this announcement via other procurement authorities as they determine appropriate.

*Prize amounts, structure, continuation criteria, and the number of awards remain subject to Government refinement.