The US Army is inviting industry proposals for a next-generation counter-drone missile designed to defeat small unmanned aircraft at extended ranges while keeping the cost below $150,000 per interceptor.
The solicitation seeks companies capable of developing, manufacturing, and sustaining a Next Generation Counter-Small Unmanned Aircraft System Missile capable of defeating Group 2 and Group 3 drones more rapidly than existing interceptors.
The proposed missile must be capable of engaging targets beyond 16 kilometers (10 miles) at an altitude of 6 kilometers (3.7 miles). The Army has also set an objective of achieving a range exceeding 25 kilometers (15 miles) at an altitude of 8 kilometers (4.9 miles). Following an operator command, the interceptor must launch in less than five seconds and integrate with the existing Coyote launcher with minimal modifications.
The Army is targeting a unit production cost below $150,000, with the planned procurement expected to involve at least 5,000 interceptors.
The system is also required to achieve Technology Readiness Level 7 following developmental testing by the fourth quarter of fiscal year 2027. Additionally, 50 missiles are expected to be available for operational assessment by the first quarter of fiscal year 2028.
US Pursues Affordable Missile Defenses
The latest solicitation reflects Washington’s broader push to develop lower-cost interceptors as drones and cruise missiles increasingly pose challenges on modern battlefields.
In July, Lockheed Martin introduced the PAC-3 Adapted Capability Effector, a Patriot interceptor designed to cost less than half the price of the PAC-3 Missile Segment Enhancement.
That same month, the US Navy selected CoAspire to develop a cost-effective ground-launched cruise missile based on its Rapidly Adaptable Affordable Cruise Missile-Extended Range for allied and partner countries.
The initiative also builds on the US Air Force’s Counter-Air Missile Program launched in November 2025. The program seeks a modular, affordable ground-launched missile that could eventually be adapted for air-to-air missions. The Air Force aims to manufacture between 1,000 and 3,500 missiles annually at a target unit cost below $500,000.
