Raytheon has secured a major $5 billion indefinite-delivery/indefinite-quantity (IDIQ) contract from the U.S. Army to provide its Coyote family of counter-unmanned aircraft systems (C-UAS). The award underscores the growing urgency in defending against small drone threats across multiple operational theaters and cements Raytheon’s position as a key supplier in the rapidly expanding C-UAS market.
Contract Scope and Strategic Implications
The contract, awarded by the U.S. Army’s Program Executive Office Missiles and Space (PEO M&S), covers procurement, sustainment, engineering services, and upgrades for the full range of Coyote interceptors through fiscal year 2030. The IDIQ structure allows flexible ordering based on evolving operational needs and technology developments.
According to official statements from Raytheon and the Department of Defense (DoD), this award supports not only domestic deployments but also Foreign Military Sales (FMS) opportunities for allied nations facing similar drone threats. The contract follows years of rapid prototyping and field testing under urgent capability acquisition pathways initiated by Joint Counter-Small Unmanned Aircraft Systems Office (JCO) directives.
This deal is one of the largest single investments in kinetic counter-drone capabilities to date and reflects a doctrinal shift toward layered air defense architectures that include short-range kinetic interceptors alongside electronic warfare (EW), directed energy weapons (DEW), and passive detection systems.
Coyote Family Overview: From ISR to Kinetic Interceptor
The Coyote system originated as a small expendable UAV developed under DARPA’s Close-In Layered Shielding program but has since evolved into a modular multi-role platform with both ISR and kinetic variants. Raytheon’s current offerings include:
- Coyote Block 1: Initially designed as an expendable ISR platform with limited loiter time; now largely retired or repurposed.
- Coyote Block 2: A tube-launched interceptor with an active radar seeker capable of autonomously engaging Group 1–3 drones at short ranges; used in conjunction with Ku-band Radio Frequency System (KuRFS) radar.
- Coyote Block 3: An enhanced version with greater speed (> Mach 0.9), improved maneuverability via control canards/fins, and upgraded seeker head for better target discrimination in cluttered environments.
The Block 2 variant was selected by the JCO as part of its interim C-sUAS solution portfolio in 2020 after successful demonstrations at Yuma Proving Ground. Since then, it has been deployed at forward operating bases and critical infrastructure sites worldwide.
Integration with KuRFS Radar and Layered Defenses
A key enabler of the Coyote system’s effectiveness is its integration with Raytheon’s KuRFS radar—a high-resolution AESA system optimized for tracking low-RCS targets like quadcopters or fixed-wing microdrones. KuRFS provides real-time target cueing to launchers equipped with multiple Coyotes per pod.
This pairing forms part of a broader layered defense concept that includes non-kinetic options such as EW jamming/spoofing systems (e.g., Dronebuster or Smart Shooter SMASH), directed energy weapons like HELWS or DE M-SHORAD lasers, and passive detection via RF triangulation or EO/IR sensors.
The modularity of KuRFS + Coyote also allows integration into larger command-and-control networks such as FAADC2 or IBCS—enabling joint fires coordination across service branches and coalition partners under Multi-Domain Operations doctrine.
Operational Use Cases and Combat Validation
The Coyotes have seen combat validation in CENTCOM areas of responsibility where Iranian-backed groups have launched swarms of commercial drones against U.S. bases in Iraq and Syria. In several instances since late 2021, Coyotes successfully intercepted incoming drones that evaded EW measures or flew low-altitude terrain-masking profiles.
U.S. Central Command officials have praised the system’s reliability under austere conditions where GPS jamming is common—thanks to its onboard inertial navigation system (INS) backup modes. Additionally, its small warhead minimizes collateral damage risk when operating near civilian areas or friendly troops.
More recently, reports indicate that select NATO allies are evaluating or trialing Coyote-based solutions amid rising concerns over FPV drone attacks modeled after tactics seen in Ukraine’s ongoing conflict—where large-scale use of cheap loitering munitions has reshaped battlefield dynamics at platoon level.
Future Developments: AI Integration & Swarm Defense
Looking ahead, Raytheon is reportedly working on integrating artificial intelligence/machine learning algorithms into future Coyote variants to enable autonomous swarm engagement logic—allowing interceptors to prioritize targets dynamically without constant human-in-the-loop oversight.
This would be critical against saturation attacks involving dozens of microdrones launched simultaneously—a tactic increasingly observed among peer adversaries experimenting with low-cost mass drone deployments supported by commercial off-the-shelf components.
The company is also exploring dual-role payloads that combine ISR sensors with limited strike capabilities—enabling a single launch platform to perform reconnaissance before switching roles mid-flight based on real-time threat assessment data shared via Link-16 or other tactical datalinks.
A Crowded Market but Clear Lead
The global counter-drone market is projected to exceed $12 billion annually by 2030 according to Teal Group estimates—with major players including Northrop Grumman’s Forward Area Air Defense Command & Control (FAAD-C2), Anduril’s Lattice OS + Anvil interceptor combo, Israel Aerospace Industries’ Drone Guard suite, and Leonardo DRS’ Mobile-Low Slow Small Unmanned Aircraft System Integrated Defeat System (M-LIDS).
Despite this competition, Raytheon’s early lead through sustained DoD investment—combined with proven performance data from actual combat zones—gives it significant first-mover advantage in both domestic procurement cycles and international sales campaigns targeting NATO members or Indo-Pacific partners like Japan or Australia seeking rapid-deployable SHORAD/CUAS kits for distributed operations models.
Conclusion
The $5 billion award confirms not only Raytheon’s dominance in kinetic counter-drone solutions but also signals how seriously modern militaries are taking the threat posed by increasingly sophisticated sUAS platforms—from hobbyist quadcopters modified for attack missions to coordinated swarms designed for ISR denial or logistics disruption behind front lines. As drone warfare continues evolving at breakneck pace, so too must layered defenses like those enabled by systems such as KuRFS + Coyote evolve—and fast.
