- The IDIQ covers Archer FPV drones plus support equipment, testing and training
- Neros builds its drones without Chinese parts and says Archer holds the highest production rate of any U.S.-built drone
- The Army wants systems under $2,000 apiece and has sought up to 10,000 drones delivered in a year
The Army has awarded Neros a firm-fixed-price, indefinite-delivery/indefinite-quantity contract worth up to $500 million for the Archer first-person-view small unmanned aircraft system. The award covers the purpose-built attritable platform along with support equipment, testing, engineering support and training, the Department of War said Tuesday.
Army Contracting Command at Aberdeen Proving Ground, Maryland, awarded the contract June 30. Work locations and funding will be set with each order, and the estimated completion date is June 30, 2031.
How Did Neros Become an Army FPV Drone Supplier?
The Torrance, California-based company has ridden the Purpose-Built Attritable System, or PBAS, program to rapid growth since Neros’ founding in 2023. Defense contracts under PBAS drove production and revenue, positioning Neros as a primary FPV supplier to the Army. The company closed a $75 million Series B round in November, led by Sequoia Capital, bringing total capital raised to over $120 million.
Neros also holds a Marine Corps delivery order for kinetic-strike-capable Archer systems and has fielded drones in Ukraine. The company builds its systems without Chinese components and says Archer has reached the highest production rate of any U.S.-built drone.
What Is Driving Army Demand for Low-Cost Attritable Drones?
The award extends an Army push for cheap, mass-producible small drones that took shape last year. Defense Daily reported in July 2025 that the service, following an April 2025 sources sought notice on production-ready PBAS offerings, issued a second call to industry focused on cost — seeking systems under $2,000 apiece, with plans to deliver up to 10,000 drones over 12 months and stated interest in platforms soldiers could modify and repair without vendor involvement.
The Pentagon’s broader Drone Dominance program, announced in December, aims to acquire more than 200,000 drones by 2027 through up to $1 billion in fixed-price orders. Neros is among 49 companies selected for the program’s Phase 2 Qualifier at Camp Grayling, Michigan.
