AeroVironment Inc. received a U.S. Army contact valued at up to $55 million to modify radio frequency communications for one of its unmanned aircraft systems.
The initial base order for the modifications to the Raven drone is valued at $862,488, with options valued at up to $55 million.
Rick Pedigo, vice president of sales and business development for the Simi Valley drone manufacturer, said that as the developer of the Raven system, the company is best equipped to support field upgrades for the small, hand-launched aircraft.
“AeroVironment and the Army are committed to supplying soldiers closest to the fight with the most advanced aerial robotic technology to gain critical situational awareness,” Pedigo said in a statement.
The Army selected AeroVironment as the sole-source supplier for spare parts for the Raven and Puma unmanned aircraft systems and for flight control systems as part of its nearly $249 million five-year Indefinite Delivery Indefinite Quantity small drone sustainment contract announced in April 2018.
Shares in AeroVironment (AVAV) closed Wednesday up 63 cents, or 1 percent, to $61.50 on the Nasdaq.