WASHINGTON / ALBUQUERQUE, N.M. — The U.S. Air Force Research Laboratory (AFRL) has awarded BlueHalo LLC an indefinite-delivery/indefinite-quantity contract with a ceiling of $99,832,117 for the Leveraged Orbital Battlespace Optimization (LOBO) research and development program.
The five-year contract is intended to support research aimed at advancing scientific knowledge and state-of-the-art technology for space systems. The contract is expected to run through August 29, 2031.
Work will be carried out in Huntsville, Alabama, and at Kirtland Air Force Base, New Mexico. AFRL’s Space Vehicles Directorate at Kirtland is the contracting activity.
At the time of the award, the Air Force obligated $1,696,597 in fiscal 2026 research, development, test and evaluation funds. The funding supports two initial task orders with a combined ceiling of $20,178,910. Additional work can be placed through future task orders under the contract.
The award followed a competitive solicitation that received one offer.
LOBO Program Details Remain Classified
The public contract announcement provides limited information about the specific technologies or systems that will be developed under LOBO. The notice describes the effort broadly as research to advance scientific knowledge and state-of-the-art technology supporting space systems.
The Air Force Research Laboratory and BlueHalo have not publicly released the technical details of the first two task orders, including the specific hardware, software or orbital platforms involved.
BlueHalo has previously worked with AFRL in areas including autonomous space-based sensing, space situational awareness, battle-management command and control, and defensive counterspace technologies.
The company has also developed space-based optical communications capabilities. In 2025, BlueHalo demonstrated a two-terminal optical communications system designed to simulate long-distance communications involving low-Earth, medium-Earth and geostationary orbits, advancing the system to Technology Readiness Level 6.
BlueHalo Now Part of AeroVironment
The LOBO award comes after BlueHalo became part of AeroVironment Inc. (NASDAQ: AVAV). AeroVironment completed its acquisition of BlueHalo in May 2025 through an all-stock transaction valued at approximately $4.1 billion.
BlueHalo is based in Huntsville, Alabama, and Arlington, Virginia, while the LOBO work will be performed at its Huntsville operation and Kirtland Air Force Base.
The new contract provides AFRL with a multi-year contracting vehicle for research related to the optimization of the orbital battlespace. While the contract has a maximum value of nearly $100 million, the amount ultimately spent will depend on future task orders issued during the contract period.
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