Zone 5 Technologies wins $12.4 million Air Force drone research deal

The San Luis Obispo unmanned aircraft maker landed a sole-source Small Business Innovation Research Phase III award for the Rusty Dagger Franchise, with work running through September 2027 in Miamisburg, Ohio.

SAN LUIS OBISPO, CALIFORNIA — Zone 5 Technologies LLC has won a $12.4 million Air Force contract for the Rusty Dagger Franchise, awarded on June 18, 2026.

Here is the full post (see war.gov): “Zone 5 Technologies LLC, San Luis Obispo, California, has been awarded a $12.4 million firm-fixed-price small business innovation and research Phase III contract for the Rusty Dagger Franchise. This contract will provide research and development on a manufacturing technology. Work will be performed at Miamisburg, Ohio, and is expected to be completed by September 2027. This contract is a sole source Small Business Innovation Research Phase III acquisition. Fiscal 2026 research, development, test and evaluation funds in the amount of $7.5 million are being obligated at time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA2385-26-C-B019). (Awarded on June 18, 2026)”

The firm-fixed-price deal funds research and development on a manufacturing technology, the Department of Defense said (see war.gov). Fiscal 2026 research, development, test and evaluation funds of $7.5 million are being obligated at the time of award. The Air Force Research Laboratory at Wright-Patterson Air Force Base, Ohio, is the contracting activity under reference FA2385-26-C-B019.

Zone 5 Technologies is a San Luis Obispo aerospace firm founded in 2011 that develops unmanned aircraft systems for defense applications (see bavovna.ai). The company builds counter-UAS interceptors, air-launched effects and precision munitions, and serves as a Department of Defense prime contractor (see bavovna.ai). Its Paladin platform appears on the Defense Innovation Unit’s Blue UAS List, confirming compliance with NDAA standards (see bavovna.ai). The award is a sole-source Small Business Innovation Research Phase III acquisition, a stage designed to transition earlier research into practical government use (see Google).

This contract represents the first award to Zone 5 Technologies LLC in 2026, bringing the company’s total contract value for the year to $12.4 million. It is also the 78th Department of Defense contract awarded in California during 2026.

The award is not the largest ever granted to Zone 5 Technologies LLC, whose record stands at $20 million. It falls between the 2026 Air Force portfolio’s year-to-date minimum of $17 and maximum of $2 billion. This award was announced among 10 Department of Defense contracts issued nationwide on June 23, 2026.

This contract represents the 1st contract awarded to Zone 5 Technologies LLC, in 2026, bringing the company’s total contract value for the year to $12,362,281. It is also the 78th Department of Defense contract awarded in California during 2026. While this is not the largest contract ever awarded to Zone 5 Technologies LLC, whose record stands at $20,000,000, it is notable within the Air Force portfolio. Specifically, it falls between the 2026 Air Force portfolio’s year-to-date minimum of $17 and maximum of $2,002,862,607. Overall, this award was announced among 10 Department of Defense contracts issued nationwide on June 23, 2026.

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