Navy awards $24M for loitering munitions to Anduril Industries, Inc., with a 505-day performance period

Contract Overview

Contract Amount: $23,995,370 ($24.0M)

Contractor: Anduril Industries, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-11

End Date: 2027-04-30

Contract Duration: 505 days

Daily Burn Rate: $47.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LOITERING MUNITION -ALL UP ROUNDS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to ANDURIL INDUSTRIES, INC. for work described as: LOITERING MUNITION -ALL UP ROUNDS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Performance period spans over 1.5 years, indicating a medium-term supply requirement. 4. The North American Industry Classification System (NAICS) code 336419 covers guided missile and space vehicle parts manufacturing. 5. The contract is not a small business set-aside, implying larger prime contractors were eligible. 6. Delivery Order type suggests this is part of a larger contract vehicle. 7. The contract is for loitering munitions, a key component in modern warfare.

Value Assessment

Rating: good

The total award amount of $23,995,370 for loitering munitions appears reasonable given the nature of the equipment and the contract duration. Benchmarking against similar contracts for advanced defense systems is challenging without more specific technical details. However, the firm fixed-price structure suggests the government has secured a defined cost for the specified deliverables, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The Navy's approach suggests they sought the best available solution through a broad solicitation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and a wider range of technological solutions, ultimately maximizing the value of taxpayer dollars.

Public Impact

The Department of the Navy is the primary beneficiary, receiving advanced loitering munitions. This contract supports the delivery of critical defense capabilities for national security. The geographic impact is primarily within the District of Columbia where the contract is registered, but the end-use will be with naval forces. Workforce implications may include specialized manufacturing and engineering roles within Anduril Industries and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or detailed technical specifications in the provided data makes it difficult to assess the true value and effectiveness of the munitions.
The duration of the contract (505 days) might be insufficient for long-term sustainment or follow-on support, potentially requiring future contracts.
Information on the specific type and capabilities of the loitering munitions is not detailed, limiting a full understanding of the technological advancement being procured.

Positive Signals

Awarded under full and open competition, indicating a robust and fair bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Anduril Industries is a known entity in the defense technology sector, suggesting a degree of established capability.
The contract addresses a critical need for modern defense systems (loitering munitions).

Sector Analysis

The defense sector, particularly the manufacturing of guided missiles and related equipment (NAICS 336419), is characterized by high technological barriers to entry and significant government investment. Spending in this area is driven by evolving geopolitical landscapes and the need for advanced military capabilities. Anduril Industries operates within this dynamic market, competing with both established defense giants and emerging technology firms. Comparable spending benchmarks are highly dependent on the specific capabilities and quantities of the munitions procured.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. This suggests that the prime contract was awarded to a larger entity, Anduril Industries, Inc., which may have its own internal small business subcontracting program. The absence of explicit set-aside provisions means that opportunities for small businesses would likely arise through Anduril's procurement practices rather than direct government mandates for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within agreed-upon terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Guided Missile Manufacturing
Defense Procurement
Ordnance and Ammunition
Unmanned Aerial Vehicles
Aerospace Product and Parts Manufacturing

Risk Flags

Potential for technological obsolescence given the rapid pace of defense innovation.
Dependence on a single contractor for a critical defense capability.
Lack of detailed public information on specific performance metrics and capabilities.
Contract duration may not cover long-term sustainment needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to ANDURIL INDUSTRIES, INC.. LOITERING MUNITION -ALL UP ROUNDS

Who is the contractor on this award?

The obligated recipient is ANDURIL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2025-12-11. End: 2027-04-30.

What is Anduril Industries, Inc.'s track record with the Department of Defense, particularly in supplying munitions?

Anduril Industries, Inc. has rapidly become a significant player in the defense technology sector, known for its innovative approach to autonomous systems and AI-enabled defense solutions. While specific details on their munitions contracts prior to this award are not provided in the abbreviated data, the company has secured numerous contracts with various branches of the U.S. military, including the Army and Marine Corps, for a range of products including drones, counter-drone systems, and intelligence, surveillance, and reconnaissance (ISR) platforms. Their track record is generally characterized by agility and a focus on rapidly developing and fielding new technologies. This $24 million award for loitering munitions from the Navy suggests a continued expansion of their product offerings and a growing trust in their capabilities to deliver critical ordnance.

How does the $24 million award compare to typical spending on similar loitering munitions contracts?

Directly comparing the $24 million award for loitering munitions to 'typical' spending is complex without knowing the exact specifications, quantity, and technological sophistication of the systems procured. Loitering munitions, also known as "kamikaze drones" or "suicide drones," vary widely in cost based on their range, payload, guidance systems, and operational endurance. Larger, more advanced systems with longer ranges and sophisticated targeting capabilities can cost significantly more per unit than smaller, simpler ones. Given that this is a delivery order potentially part of a larger contract vehicle, the $24 million may represent a specific tranche of production or a particular capability set. However, for context, other government contracts for similar unmanned aerial systems and munitions have ranged from millions to hundreds of millions of dollars, depending on the scale and complexity of the requirement. This award appears to be a substantial, but not unprecedented, investment for acquiring such specialized defense assets.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance issues, delivery delays, and technological obsolescence. Since the contract is Firm Fixed Price (FFP), the risk of cost overruns is primarily borne by the contractor, Anduril Industries, Inc. Performance risks are mitigated through the contract's defined specifications and delivery schedules, with potential penalties for non-compliance. Technological obsolescence is an inherent risk in defense procurement; however, the 505-day performance period suggests a focus on current operational needs rather than long-term, cutting-edge development that might quickly become outdated. The Department of the Navy's oversight and quality assurance processes are crucial for monitoring performance and ensuring the delivered munitions meet the required standards. Furthermore, awarding to a known entity like Anduril, which has a track record in defense tech, can reduce the risk associated with an unproven supplier.

How effective is the firm fixed-price (FFP) contract type in ensuring value for money for this specific procurement?

The Firm Fixed Price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the risks are understood, as is often the case with the procurement of established or standardized defense equipment like munitions. For this contract, the FFP structure incentivizes Anduril Industries, Inc. to control costs and manage its resources efficiently to maximize profit, which can translate into competitive pricing for the government. It provides cost certainty, allowing the Department of the Navy to budget accurately. The primary benefit for value for money is that the government pays a set price for the specified goods, shifting the financial risk of cost overruns to the contractor. This encourages the contractor to be efficient and deliver the required quantity and quality of loitering munitions within the agreed budget, thereby protecting taxpayer funds from unexpected cost increases.

What are the historical spending patterns for loitering munitions or similar systems by the Department of the Navy?

Historical spending patterns for loitering munitions by the Department of the Navy, and the broader Department of Defense, have seen a significant increase in recent years, reflecting the growing recognition of their tactical importance. While specific figures for the Navy's loitering munitions procurement prior to this $24 million award are not detailed in the provided data, trends indicate a strategic shift towards incorporating these systems into operational planning. The Navy, along with other services, has been investing in various unmanned systems, including those capable of strike missions. This $24 million award can be seen as part of a larger, ongoing investment strategy to modernize naval aviation and surface warfare capabilities with autonomous and semi-autonomous weapon systems. Analyzing broader defense budgets for unmanned aerial vehicles (UAVs) and missile systems would provide a more comprehensive historical context, showing a consistent upward trend in funding for such technologies.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785423R1037

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 909 E ST NW FL 6, WASHINGTON, DC, 20004

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,995,370

Exercised Options: $23,995,370

Current Obligation: $23,995,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785424D1026

IDV Type: IDC

Timeline