The U.S. Department of Defense has awarded RTX’s Raytheon division a massive $5.04 billion indefinite-delivery/indefinite-quantity (IDIQ) contract to supply the U.S. Army with Coyote counter-unmanned aircraft systems (C-UAS) and Ku-band Radio Frequency System (KuRFS) radars. The award underscores the Pentagon’s push to accelerate fielding of layered air defense solutions amid escalating drone threats from peer and non-peer actors.
Contract Scope and Strategic Importance
Announced on September 25, 2025, the contract covers procurement of both kinetic and non-kinetic counter-UAS capabilities under a 5-year ordering period with potential options extending through 2030. The IDIQ framework allows flexibility in quantities and delivery timelines based on evolving operational needs.
The award is part of the U.S. Army’s enduring commitment to its Joint Counter-small Unmanned Aircraft Systems Office (JCO) strategy—a multi-layered approach integrating sensors, effectors, command-and-control (C2), and AI-enabled decision aids to defeat Group 1–3 drones (up to ~55 kg). With adversaries increasingly employing low-cost drones in swarms or as ISR/loitering munitions platforms—as seen in Ukraine and the Middle East—the need for scalable C-UAS architectures has become urgent.
Coyote Interceptors: Evolution of a Modular Drone Killer
The Raytheon Coyote family has evolved significantly since its initial development as a tube-launched expendable UAV for ISR missions under DARPA’s LOCUST program. The current Block 2 variant is optimized as a kinetic interceptor capable of autonomously tracking and engaging small UAVs using onboard sensors and datalinked cues.
Key features include:
- Vertical launch capability: Enables rapid deployment from fixed or mobile launchers.
- Onboard seeker: Electro-optical/infrared (EO/IR) or radar-based guidance allows autonomous terminal engagement.
- Modular payloads: Supports kinetic warheads or electronic attack modules depending on mission profile.
The Block 3 variant—currently in testing—adds improved maneuverability, extended range (~15–20 km), hardened communications against jamming/spoofing, and integration with AI-enabled fire control systems like FAAD-C2 or MADIS.
KuRFS Radar: High-Fidelity Detection in the SHORAD Layer
The Ku-band Radio Frequency System (KuRFS), also developed by Raytheon Technologies, is a multi-mission active electronically scanned array (AESA) radar designed specifically for short-range air defense applications. Operating in the high-frequency Ku-band (~12–18 GHz), it offers fine resolution tracking ideal for detecting low-RCS targets such as quadcopters or loitering munitions flying at low altitude.
Notable specifications:
- 360° coverage: Via rotating mount or distributed fixed arrays.
- Target classification: AI-enhanced discrimination between birds/UAVs/missiles using micro-Doppler signatures.
- Cueing integration: Interfaces with FAAD-C2, Link-16 networks, and other IAMD components including NASAMS and IFPC-HEL systems.
KuRFS is already fielded as part of several SHORAD configurations including the Mobile-Low Slow Small UAS Integrated Defeat System (M-LIDS) deployed by CENTCOM forces. Its inclusion in this contract suggests broader standardization across Army formations beyond special operations units.
Tactical Integration into Layered Air Defense Architecture
This procurement aligns with broader modernization efforts under the Army’s Integrated Air & Missile Defense (IAMD) roadmap which envisions seamless sensor-to-shooter links across echelons—from platoon-level SHORAD teams to theater-level Patriot batteries.
The pairing of KuRFS with Coyote interceptors enables an organic kill chain that can detect-track-engage hostile drones within seconds—without relying on external radar feeds or higher-echelon authorization loops. When integrated with command suites like FAAD-C2 or MSHORAD vehicles based on Stryker platforms, these systems form a responsive defensive bubble around critical assets such as forward operating bases (FOBs), logistics hubs, or mobile convoys.
This modularity also supports export variants under Foreign Military Sales (FMS), particularly for partners facing similar drone saturation threats but lacking deep IADS infrastructure—e.g., Ukraine, Taiwan, Iraq/Saudi Arabia deployments have reportedly tested earlier versions of these systems under combat conditions since at least 2021–2023.
Industry Implications and Production Outlook
This $5 billion award cements Raytheon’s leadership in the counter-drone market segment amid rising competition from firms like Anduril Industries (Anvil system), Northrop Grumman (Bushmaster XM914 + proximity-fused ammo), Rafael/DRS (Iron Dome derivatives), and Leonardo DRS’ Moog Reconfigurable Integrated-weapons Platform (RIwP).
The contract will be executed primarily at Raytheon’s facilities in Tucson (AZ) for interceptors and Fullerton/El Segundo (CA) for radar modules—with supply chain contributions from over two dozen subcontractors nationwide handling electronics packaging, propulsion units, seeker heads, software integration etc.
The Pentagon expects initial deliveries under this contract by Q4 FY2026 with full-rate production ramping up by FY2028 depending on test validation milestones currently underway at Yuma Proving Ground. Congressional oversight may scrutinize cost-per-intercept metrics given past concerns about affordability versus drone cost asymmetry; however operational commanders have consistently praised system effectiveness during Red Sands trials and CENTCOM deployments since late 2020s.
Conclusion: Toward Scalable Drone Defense Across Domains
This landmark contract signals the Pentagon’s shift toward scalable counter-drone ecosystems that blend kinetic interceptors like Coyote with high-fidelity sensors such as KuRFS under unified command architectures. As drone threats proliferate across land-sea-air domains—from commercial quadcopters used by insurgents to militarized FPVs deployed by peer adversaries—the need for agile defenses at tactical edge becomes paramount.
If executed effectively across its five-year span—and coupled with doctrinal evolution around distributed air defense—the program could serve as a blueprint not only for U.S. forces but also allied militaries adapting to the age of ubiquitous unmanned threats.
