U.S. Army Awards Production Contract for P550

U.S. Army Awards Production Contract for P550 Long Range Reconnaissance Systems from AeroVironment (AV) company

March 23, 2026 — REDSTONE ARSENAL, AL — In a major advancement for Army unmanned aviation capabilities, the Capability Program Executive Aviation’s Uncrewed Aircraft Systems Project Office (UAS PO) announced the award of a production contract for P550 Long Range Reconnaissance (LRR) Unmanned Aircraft Systems (UAS) to defense contractor AeroVironment (AV). The announcement, published on March 23, 2026, underscores the service’s ongoing efforts to accelerate delivery of modern reconnaissance capabilities to Army units.

Under the contract, P550 systems are being acquired through the Unmanned Aircraft Systems Marketplace Basic Ordering Agreement (BOA) — an acquisition mechanism designed to significantly streamline the procurement process and reduce traditional timelines from months or years to just days. UAS Marketplace agreements allow Army acquisition officials to place orders quickly for commercially available uncrewed systems that meet established Army requirements.

The Long Range Reconnaissance capability is intended to provide maneuver battalion commanders with enhanced organic reconnaissance, surveillance, and target acquisition tools that can operate at a distance from threats on the battlefield. According to the official Army release, the systems will improve situational awareness and give commanders rapid, real‑time information to support tactical decision‑making.

“This award is a testament to the Army’s commitment to rapid and agile acquisition,” said Col. Danielle Medaglia, Project Manager for Uncrewed Aircraft Systems. Her statement highlighted how the UAS Marketplace reduces traditional procurement timelines, allowing advanced capabilities to reach Soldiers at “the speed of relevance.”

About the P550 LRR System

The P550 is part of the Army’s Group 2 class of small UAS. Earlier deliveries and developmental efforts have positioned the platform as a flexible and capable reconnaissance tool. It has been deployed in initial deliveries to support training and early operational integrations, including training of master trainers and field‑unit familiarization.

Group 2 UAS like the P550 are designed to be maneuverable, rapidly deployable, and modular in configuration — with the ability to swap payloads and sensors according to mission demands. These systems typically provide intelligence, surveillance, and reconnaissance (ISR) capabilities at the battalion level and beyond.

Industry reporting also indicates that earlier contractual awards related to the P550 have included multi‑year agreements with initial values in the low tens of millions of dollars, with options that could expand total potential payments as deliveries and support activities continue.

Significance & Context

The Army’s investment in long‑range reconnaissance UAS aligns with broader modernization goals aimed at enhancing battlefield awareness, increasing operational tempo, and equipping ground forces with cutting‑edge unmanned systems capable of performing complex missions in contested environments. Using accelerated acquisition pathways like the UAS Marketplace reflects the service’s shift toward more rapid capability delivery to address emerging threats and evolving operational requirements.

Source: U.S. Army