Pentagon Details $450 Million Drone Dominance Competition as Gauntlet 2.5 Moves to November

Phase III raises production requirements and technical expectations, while a separate competition for reusable bomber drones faces a schedule change.

The Pentagon’s Drone Dominance Program is preparing for its next major competition, with plans to purchase approximately 60,000 one-way attack drones under a $450 million Phase III initiative. The program has also postponed Gauntlet 2.5, a separate competition for reusable bomber drones, until early November.

Both developments are part of the Pentagon’s effort to expand domestic drone production and accelerate military procurement.

Phase III Targets 60,000 Drones

The Phase III Request for Solutions (RFS) outlines an initial purchase of approximately 60,000 drones, with an option for up to 40,000 additional units.

The initial purchase will be divided equally between two mission categories: Deep Strike and Close-Quarters Battle. The government has established fixed prices of $5,000 per Deep Strike drone and $3,000 per Close-Quarters Battle drone, excluding munitions and supporting equipment.

The solicitation closed on October 12, 2026. Gauntlet III testing is expected in March 2027.

Phase III places greater emphasis on manufacturing capacity. Applicants must demonstrate that they can produce at least 8,000 drones within five months, with the potential to exceed 100,000 units annually.

The competition is also more selective than earlier rounds. Ten Gauntlet II winners qualify for an expedited process, while new applicants must pass an initial review and flight demonstration.

The government expects to invite no more than 14 companies to the production stage. Up to four vendors in each mission category may ultimately receive prototype delivery orders.

Higher Technical Expectations

Phase III introduces more demanding operational requirements.

For Deep Strike missions, the Pentagon seeks drones capable of operating at ranges of 15 to 20 kilometers, including where satellite navigation or communications are disrupted.

Desired capabilities include automated target recognition, navigation without GPS, and the ability for one operator to control multiple aircraft.

Close-Quarters Battle systems will focus on rapid deployment and operations in confined environments. The solicitation favors compact, portable drones that allow operators to switch quickly between aircraft.

The program also encourages standardized interfaces between drones, payloads, and control systems. While some interoperability standards remain preferred rather than mandatory, Phase III requires greater compatibility between aircraft and munitions.

Manufacturers will be evaluated on performance, military operator feedback, payload effectiveness, production capability, and supply chain compliance. The solicitation states a preference for systems sourced and manufactured primarily in the United States.

Gauntlet 2.5 Postponed Until November

Separately, the Drone Dominance Program has postponed Gauntlet 2.5, which will evaluate reusable bomber drones.

Originally scheduled for October at Camp Grayling, Michigan, the competition is now expected to begin in early November.

According to an October 9 update on the program’s official announcements page, the schedule adjustment will allow the government to provide a better testing environment. The announcement did not identify a specific cause for the delay.

Gauntlet 2.5 expands the program beyond one-way attack drones to aircraft designed to carry payloads and return for reuse. The Pentagon previously invited 17 companies to participate, with approximately $32 million anticipated for initial prototype orders.

From Testing to Procurement

Gauntlet II concluded in September, identifying top-performing systems in the Deep Strike and Close-Quarters Battle categories.

The Drone Dominance Program is jointly executed by the Defense Innovation Unit and the Test Resource Management Center, with Naval Surface Warfare Center Crane serving as the contracting authority.

The Phase III solicitation reflects a shift toward more demanding performance requirements and larger production orders. The next competitions will test whether manufacturers can meet those requirements while delivering drones at the scale and pace the Pentagon is seeking.