Analysis & Reports

V2X confirmed on September 8, 2026, that it has been awarded a $19 million contract by the U.S. Marine Corps to deliver 10 Tempest counter-drone vehicles, including maintenance and training support. The Tempest vehicles, which have a combat record in Ukraine, are designed to counter unmanned aerial systems and are equipped with AGM-114L Longbow Hellfire missiles. The contract is set to run through August 10, 2027.

American Rheinmetall secured a $7.28 million contract to deliver 12 Mission Master SP autonomous ground vehicles and 5 amphibious kits to the U.S. Marine Corps in 2023. These vehicles will be utilized for testing and evaluation as part of the Marine Corps' autonomous logistics and expeditionary mobility programs. The Mission Master SP features Rheinmetall’s PATH autonomy system and has been tested in various military exercises, including Talisman Sabre in Australia.

BAE Systems is overhauling two Mk 45 Mod 4 naval guns for the U.S. Navy at its facility in Louisville, Kentucky, with completion expected by March 2030. The U.S. Navy has added $38.2 million to the contract, which is funded through fiscal 2024 shipbuilding money. The Mk 45 guns serve as the primary deck gun on Navy destroyers and cruisers, enhancing their firepower capabilities.

The U.S. Army awarded a $581 million contract to Nitradyn LLC to build a new plant for manufacturing IMX-104 explosives in Tampa, Florida. This facility aims to address a production gap in artillery ammunition, with work expected to be completed by August 9, 2030. The Army seeks to increase production capacity to support its goal of 100,000 rounds of 155 mm artillery shells per month, driven by ongoing military needs.

The U.S. Air Force added $826 million to its missile contract with Lockheed Martin, raising the total to $10.48 billion for the production of JASSM and LRASM missiles. This modification was issued by the Air Force Life Cycle Management Center at Eglin Air Force Base on June 27, 2026, with completion expected by July 31, 2030. The contract supports ongoing production and includes deliveries to allied nations under Foreign Military Sales agreements.

The U.S. Army Corps of Engineers awarded a $74.8 million contract to Conti Federal Services for the construction of a new hangar for the B-21 Raider stealth bomber at Whiteman Air Force Base, Missouri. The facility will support one B-21 aircraft and is expected to be completed by September 25, 2029. This hangar is part of the broader effort to enhance the Air Force's bomber fleet capabilities.

The U.S. Air Force awarded $149 million in contracts to four manufacturers for the production of metal cases for large bunker-busting bombs. The contracts, which involve Superior Forge and Steel, Ellwood National Forge, Faxon Machining LLC, and Grand Valley Manufacturing, are expected to be completed by September 7, 2033. This production supports the Air Force's existing GBU-57 Massive Ordnance Penetrator and the development of the Next Generation Penetrator.

The U.S. Army awarded Northrop Grumman a $4.84 billion contract for the production of the Common Infrared Countermeasures system (CIRCM) on September 8, 2023, at Redstone Arsenal, Alabama. This new laser-based system is intended to enhance helicopter defense against heat-seeking missiles. The contract is set to run until September 30, 2035, and includes provisions for the system's use on allied aircraft, including Germany's CH-47 Chinook fleet.

Machina Labs is set to expand its manufacturing capabilities in Los Angeles with a new facility aimed at producing missile components and airframes using AI and robotics. The Pentagon is addressing a skilled trades crisis, highlighting the need for 320,000 new welders by 2029, and has awarded a $10 million grant to BuildFreedom.us to enhance workforce training. Additionally, oversight of defense articles abroad is being improved following inconsistencies in investigations.

The Pentagon is expanding the use of the Maven Smart System for logistics, force readiness, and supply chain management in Washington, D.C. The system has replaced several IT systems and is being integrated with AI tools to enhance decision-making. Recent changes have also shortened procurement timelines, allowing for faster vendor selection. The Department of Defense is working with allies to improve their AI capabilities.

Approximately 2500 Canadian Armed Forces members participated in Exercise MAPLE RESOLVE 21 in Wainwright, Alberta, from May 1 to 11, 2021. The exercise tested soldier skills in a complex combat environment. Concurrently, trade tensions escalated as Canada imposed counter-tariffs on U.S. goods, prompting a U.S. response with bans on Canadian products, highlighting a potential breakdown in trust between the two nations.

The Pentagon requested to reprogram $1.5 billion in funding for high-priority AI initiatives and the MV-75 Cheyenne tiltrotor program. This includes $600 million for a top-secret AI compute center and $230 million for the tiltrotor's research and development. The reprogramming aims to address funding shortfalls that could impact military operations and employment within the defense industry. Additionally, $18 million is allocated for Army drones and $36 million for counter-UAS technology.

The U.S. Navy terminated the A-12 Avenger II program in January 1991 due to technological failures and a fixed-price contract that did not account for the immature technology required. The program, which aimed to develop 8 aircraft and 4 test articles, resulted in no flyable aircraft and significant financial losses. This cancellation is viewed as a critical factor in the decline of McDonnell Douglas and has led to ongoing financial issues for Boeing due to similar contracting practices.

The U.S. Department of Defense updated its physical fitness policy on August 31, 2023, designating over 80 military occupations as combat arms, requiring them to complete a new combat field test. This includes various branches such as the Army, Navy, Marine Corps, and Air Force, with specific tests tailored to each service. The changes aim to establish sex-neutral standards and may impact personnel who fail to meet the new requirements.

Poseidon Aerospace raised $60 million in funding to develop unmanned cargo aircraft, specifically the Egret model, aimed at enhancing logistics for both commercial and defense sectors. The company, headquartered in Alameda, California, plans to operate its own cargo flights to serve remote routes and support Defense Department logistics. The first uncrewed flight of Egret is anticipated by the end of 2026.

China's navy has expanded to 350 ships, surpassing the US's 293. By 2030, China plans to increase its fleet to 435 ships, while the US aims to add 58 ships by 2031. The US Navy struggles with maintaining fleet readiness, with projections showing a readiness rate of only 68% by 2025. High costs and outdated regulations hinder US shipbuilding efforts.

The White House announced a new National Space Transportation Policy on August 20, 2023, aiming for over 1,000 U.S. space launches annually by 2030. This policy emphasizes expanding launch capacity and interagency collaboration among the U.S. Space Force, Department of Defense, and NASA. Experts have raised concerns regarding the funding and infrastructure needed to achieve these ambitious goals.

Two C-130 cargo planes arrived at Lackland Air Force Base on August 25, 2023, to serve as training platforms for new recruits in Basic Military Training. The planes will provide hands-on experience in airfield operations, including cargo loading and aircraft refueling. This transition marks the end of their flying career, as they will no longer participate in active missions.

AeroVironment received its first international order for the LOCUST laser weapon system on September 8, valued at over $50 million. The order includes an initial batch of systems and support services, highlighting the growing recognition of high-energy laser systems in modern air defense. The LOCUST system is designed to counter drone threats and is part of AeroVironment's expansion efforts in Albuquerque, New Mexico.

The U.S. Navy faces significant challenges in building nuclear-powered warships due to capacity constraints and labor shortages at its two shipyards in Virginia and Connecticut. The delivery of the future USS Doris Miller has been delayed to 2034, and the Navy is struggling to meet its submarine production requirements. Meanwhile, China continues to launch new aircraft carriers at a rapid pace, highlighting the widening gap in naval capabilities.