WASHINGTON — April 20, 2026 : The U.S. Navy has selected Shield AI to provide contractor-owned, contractor-operated (COCO) intelligence, surveillance, and reconnaissance (ISR) services in support of naval and joint force operations, the company announced.
Under the multi-vendor arrangement, Shield AI will compete for task orders alongside AeroVironment, Insitu, and Textron. The contract vehicle carries a ceiling of up to $800 million across all awardees, with individual delivery orders competed rather than guaranteed to any single company.
COCO Model Expands Flexible ISR Procurement
The Navy’s use of the contractor-owned, contractor-operated (COCO) framework allows industry partners to retain ownership of aircraft and provide operational crews. This model enables the service to access persistent ISR capabilities without assuming the costs and logistics associated with government-owned fleets, including procurement, maintenance, and personnel training.
The approach also supports faster deployment timelines and demand-based scaling of ISR capacity, while transferring operational and sustainment risks to contractors. The program reflects a broader Department of Defense shift toward commercially provided ISR services, particularly for missions requiring rapid fielding and flexible force structure.
V-BAT System and Technical Characteristics
Central to Shield AI’s offering is the V-BAT unmanned aircraft system, classified as a Group 3 UAS, a category covering platforms with maximum takeoff weights between 55 and 1,320 pounds. The V-BAT has a gross weight of approximately 161 pounds, a length of 12.5 feet, and a wingspan of 9.6 feet.
The system uses a ducted-fan vertical takeoff and landing (VTOL) design powered by a heavy-fuel engine compatible with JP-5. It is capable of operating for more than 12 hours and requires only a 12-by-12-foot footprint for launch and recovery.
Its enclosed-rotor configuration allows unassisted vertical operations from confined ship decks and austere land sites without the need for runways or complex launch infrastructure. This reduces crew size requirements and preserves deck space, enabling deployment from vessels that cannot support larger aviation systems.
Operations in Contested Environments
The V-BAT was designed for operations in contested electronic warfare environments where GPS and communications links may be degraded or denied. The system integrates Shield AI’s Hivemind autonomy software, developed in collaboration with Palantir Technologies, allowing it to continue missions with reduced reliance on continuous human control.
According to Shield AI, the platform has conducted hundreds of targeting operations in Ukraine under conditions where GPS and communications are routinely jammed. The system has also supported counter-narcotics missions in the Caribbean and Pacific, contributing to the interdiction of more than 100,000 pounds of illicit drugs.
Maritime Operational Record
The V-BAT has established a track record in maritime ISR operations prior to the Navy’s latest selection. The system has been deployed with the U.S. Marine Corps from Navy ships and supported the U.S. Coast Guard under a separate $198 million COCO contract awarded in 2024.
It also participated in the UNITAS 2025 exercise, operating from the littoral combat ship USS Cooperstown. These deployments demonstrated long-endurance surveillance capabilities aligned with naval ISR requirements, including shipboard compatibility without dedicated launch and recovery systems.
Industry Competition and Task Order Structure
The Navy’s ISR services vehicle is structured under basic ordering agreements, allowing multiple vendors to compete for individual task orders for both land- and sea-based UAS operations. The $800 million ceiling represents the total potential value across all participating companies rather than a fixed award to any single contractor.
Shield AI will continue to deliver ISR services under existing contracts while competing for future Navy task orders within this framework.
International Adoption and Expansion
Beyond U.S. operations, the V-BAT has also been adopted by international partners. The Royal Netherlands Navy declared the system operational in March 2026 following shipboard testing aboard the HNLMS Johan de Witt off northern Norway. The service is acquiring 12 systems for deployment across eight vessels.
Shield AI has additionally supplied the platform to other partners, including the Japan Maritime Self-Defense Force and the European border agency Frontex, and is supporting production through a $90 million manufacturing joint venture in India with JSW Defense.
Program Outlook
The Navy’s adoption of contractor-operated ISR services is expected to expand as part of broader efforts to enhance surveillance coverage while maintaining flexibility in force deployment. Shield AI’s inclusion in the program positions the company to compete for a share of future task orders as operational demand evolves.
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