U.S. Army Awards $982 Million Contract to Mistral for Kamikaze Drones

The Pentagon has awarded Mistral Inc., a Maryland-based defense contractor, a contract valued at $982 million to supply the U.S. Army with lethal unmanned systems. The agreement is structured as a hybrid cost-no-fee and firm-fixed-price contract, with an estimated completion date of September 29, 2030.

The contract was issued by the Army Contracting Command at Aberdeen Proving Ground under contract number W91CRB-25-D-A009. It was awarded on a sole-source basis under Federal Acquisition Regulations 6.302-7, citing the public interest as justification. Work locations and funding will be determined with each order.

Mistral, headquartered in Bethesda, Maryland, is the exclusive U.S. representative of Israel’s UVision, a company specializing in loitering munitions. UVision’s HERO family of systems can remain in the target area for extended periods before executing a precision strike. This partnership provides the Army with a direct channel to acquire HERO-series loitering munitions for various missions.

Loitering munitions, also called “kamikaze drones”, combine surveillance and strike capabilities. They are launched toward a target area, loiter while providing real-time information, and strike the target once confirmed. These systems are designed to deliver precise effects with reduced collateral impact, offering a cost-effective alternative to larger missile systems.

The HERO family includes different variants for infantry, special operations, and larger platforms such as vehicles or naval vessels. The systems provide extended decision time for commanders while reducing the need for heavier strike assets.

The new contract is expected to support production, training, spare parts, and sustainment over the coming years. Mistral’s role as prime contractor ensures integration and delivery of these systems to the Army while maintaining operational readiness.

Loitering munitions are increasingly used for targeting high-value positions, air defense systems, armored vehicles, and command posts. Their flexibility, precision, and endurance make them suitable for a variety of conventional and tactical applications.

The $982 million contract reflects the Army’s focus on expanding its unmanned capabilities and incorporating loitering munitions into its operational framework. The contract also highlights Mistral’s role in supplying and maintaining these systems for U.S. forces through its partnership with UVision.