In a move to accelerate the development and deployment of emerging technologies, the US Army is launching a new program called „Army FUZE.” This venture-capital-like acquisition model aims to speed up private sector innovation for the benefit of soldiers in the field.
Shifting Perspectives: Private Sector and Rapid Iteration
“The foundational-like shift and the philosophy of this program is to […] shift our perspective to the private sector, identify testing capabilities where they are far outpacing the Army, and identify new ways where Army dollars can be coalesced with private and venture capital to help companies accelerate from that initial concept rapidly to develop prototypes, get those prototypes in the hands of our soldiers, and provide rapid iteration to deploy out to the field,” Matt Willis, director of Army Innovation Programs, told Breaking Defense ahead of the announcement.
$750 Million Per Year Investment
The FUZE program aims to invest $750 million annually in emerging, nontraditional, or „bleeding-edge” tech firms through four existing initiatives: the xTech program, the Small Business Innovation Research (SBIR) program, the Tech Maturation Initiative (TMI), and the Manufacturing Technology office (ManTech), according to Army Deputy Assistant Secretary for Research and Technology Chris Manning.
Inspired by the Private Equity World
Army Secretary Daniel Driscoll, who previously served as chief operating officer of the $200 million Flex Capital VC fund, spearheaded the creation of this VC-like model. “The future of warfare will depend on speed. We will need to be able to move fast to get capabilities into the hands of our warfighters. FUZE will align funding and authorities to streamline the acquisitions process,” Driscoll said in a statement to Breaking Defense.
VC-Backed Startups Gaining Ground
The birth of FUZE also reflects the growing prevalence of VC-backed startups in the defense industrial base. Companies like Anduril, Palantir, and others have secured major Army contracts, showcasing the potential of private sector innovation in the defense landscape.
Focus Areas: UAS, Counter-UAS, EW, and Energy Resiliency
While FUZE plans to invest in a wide range of technology areas, it will initially prioritize funding companies that deliver unmanned aerial systems (UAS), counter-UAS, electronic warfare (EW), and energy resiliency solutions.
Prize Competitions and Flexible Funding
The Army intends to launch its first prize competition, funded through the xTech program, for the initial four technology categories at the annual Association of the United States Army conference next month. In addition to prize competitions, FUZE will also leverage SBIR contracts, Technology Maturation Initiative funding, and ManTech projects to support innovators at various stages of development.
