The U.S. Army’s $990 million contract award to AeroVironment for Switchblade loitering munitions is currently on hold following a protest filed by Mistral Inc.

According to an SEC filing by AeroVironment, the protest, which was submitted to the Government Accountability Office (GAO) on September 6, has led to the Army issuing a stop work order. This means that all production on the awarded contract must cease while the GAO reviews the case and makes a determination. Defense One was the first to report on the SEC filing.

The GAO is expected to provide a ruling by December 16. If the GAO denies the protest, production will resume as planned; however, if it sustains the protest, the Army may be compelled to reopen the competition for the program formally known as the directed requirement for Lethal Unmanned Systems (LUS), which was awarded on August 28.

AeroVironment has enjoyed a successful series of contracts for its Switchblade systems, which are available in two variants, over the past year. In October 2023, the Army announced it would purchase a small number of Switchblade 600 units. Additionally, the program gained significant attention in May when it became the first publicly announced winner of a contract from the Replicator program. The Switchblade has also seen active use in Ukraine.

Shortly after the Replicator announcement, AeroVironment CEO Wahid Nawabi informed Breaking Defense that the company was ramping up production in light of anticipated growth in demand.

On the other hand, Mistral Inc., based in Bethesda, Maryland, although not widely recognized, has secured at least one Department of Defense contract this year: a May 17 order from U.S. Special Operations Command with a maximum value of $73.5 million for its GOLAM II loitering munitions.

As of now, a spokesperson for AeroVironment has not been reachable for comment. Voicemails left at Mistral’s office and inquiries sent through its website have not received a response by press time.

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