U.S. GAO Denies Protest Against Army's $990M Switchblade Contract Award to AeroVironment

The U.S. Government Accountability Office (GAO) has denied the protest filed by Mistral Inc. on September 6, 2024, challenging the U.S. Army’s sole-source award of a $990 million contract for AeroVironment’s (AV) Switchblade systems.

The GAO’s decision supports the integrity of the Army's procurement process and confirms that the evaluation of operational requirements was conducted thoroughly.

This contract, awarded on August 28, 2024, pertains to the Army’s directed requirement for Lethal Unmanned Systems (LUS) and will involve the continued production of Switchblade loitering munitions. AV expressed confidence in the outcome, with CEO Wahid Nawabi emphasizing the company’s commitment to delivering innovative and effective capabilities to meet operational needs.

The protest, filed by Mistral, temporarily halted production in September, but the Army lifted the stop-work order shortly after, allowing work on the contract to resume. The GAO’s final ruling on December 16 upheld the Army’s decision to award the contract to AeroVironment, ensuring that the Switchblade systems will continue to be delivered for defense use.

AeroVironment’s Switchblade systems have been deployed in various military operations, including in Ukraine. The company has also expanded production capabilities to meet growing demand following its recent contract wins, such as the Replicator program.

Mistral, based in Bethesda, Maryland, has also secured defense contracts, including a $73.5 million order from U.S. Special Operations Command for its GOLAM II loitering munitions.