US Defense Innovation Unit launches $40 million competition for counter-drone vessels

The Defense Innovation Unit (DIU) has launched a new phase of the ‘Suitable Warfighting Adaptive Payloads’ (SWAP) competition, offering up to $40 million to develop unmanned surface vessels (USVs) capable of air defense. The initiative aims to provide the U.S. Navy with low-cost solutions to counter asymmetric threats, such as explosive USVs and small drones, which currently force the military to rely on expensive manned platforms.

The competition, specifically the ‘Sprint 2’ phase, seeks production-ready vessels that can detect, track, and engage aerial targets, including Group 1–3 drones and helicopters, at ranges exceeding three nautical miles. The Pentagon has expressed high interest in systems capable of addressing larger Group 5 drones as well.

Participating systems must integrate existing weaponry, such as Hellfire, JAGM, or Stinger missiles, and demonstrate a minimum operational range of 200 nautical miles with a cruise speed of at least 10 knots. The DIU has allocated an additional $200 million for potential prototype development or mass production contracts following the competition. Submissions for this phase are due by November 30, 2026, with sea trials expected in early 2027.