U.S. Army Awards $4.19 Billion Contract to Boost Aerostat Surveillance Capabilities

In a major move to strengthen its long-range surveillance and intelligence operations, the U.S. Army has awarded a massive 10-year contract worth $4.19 billion to ten companies for the supply and support of aerostat systems. The contract, officially known as a Multiple Award Task Order Contract (MATOC), is aimed at advancing the Army’s airborne surveillance capabilities through cutting-edge tethered balloon systems and integrated intelligence technologies.

The MATOC will support the Product Director Aerostats Production office and includes a wide range of services—ranging from hardware procurement and engineering to system fielding, logistics, life-cycle support, and replenishment of Army stocks. In simple terms, this means the selected companies will not only deliver aerostat systems but also help maintain and evolve them over the next decade.

Aerostats are large, tethered balloons equipped with powerful sensors that can stay aloft for extended periods. Their primary role is to provide persistent Intelligence, Surveillance, and Reconnaissance (ISR) in various environments. These systems are especially useful for monitoring large areas, detecting threats early, and providing real-time intelligence to troops on the ground.

Among the key systems covered under this contract is the Persistent Surveillance System – Tethered (PSS-T). This platform has already proven its value in overseas contingency operations and is also included in prepositioned Army stocks for rapid deployment. PSS-T combines multiple sensors, giving commanders a steady flow of visual and data-based intelligence, which can be crucial during combat or border security missions.

The MATOC will also support another critical program—the Persistent Surveillance Dissemination System of Systems (PSDS2). This system connects various sensors and aerostats into a unified network, enabling faster delivery of intelligence to field units and command centers. In short, it acts like a digital nervous system, linking surveillance tools and getting the right information to the right people at the right time.

One of the standout features of this contract is its flexibility. The Army can add or remove vendors as operational needs change, ensuring that its surveillance systems stay technologically current and mission-ready. This adaptability is vital in today’s fast-changing security landscape, where threats evolve rapidly and intelligence systems must keep pace.

The ten firms selected for this prestigious contract are:

• Raytheon Company

• Leidos Inc.

• Qinetiq Inc.

• TCOM LLC

• Tyonek Technical Services LLC

• Advanced Technology Systems Company

• Elevated Technologies

• Mission Solutions Group

• Skyship Services Inc.

• Thunderbolt Software

These companies bring a wide range of expertise—from aerostat manufacturing and integration to advanced software and operations support—ensuring a holistic and robust approach to airborne surveillance.

A Strategic Investment in Persistent Surveillance

This contract is not just about equipment—it represents a strategic investment in the Army’s ability to maintain a constant watch over critical regions, both at home and abroad. As global tensions continue to rise and asymmetric threats like drones and insurgent movements become harder to track, persistent ISR systems like aerostats are more important than ever.

By awarding this long-term contract, the U.S. Army is ensuring that its surveillance infrastructure remains effective, flexible, and ready for the challenges of tomorrow. The combination of hardware, software, and operational support built into this agreement reflects a modern approach to defense—one that prioritizes information dominance as much as firepower.