AeroVironment, Inc. (NASDAQ: AVAV) has been awarded a $117.3 million contract by the U.S. Army to supply its P550 electric vertical take-off and landing (eVTOL) unmanned aerial system, according to a company press release.

The contract, issued under a Basic Ordering Agreement through the U.S. Army's UAS Marketplace initiative, covers the delivery of 82 P550 systems in support of the Army's Battalion Reconnaissance effort and Long Range Reconnaissance program. The company says this represents the initial full-rate procurement of the P550.

The award was granted through a competitive Call for Solutions process, a procurement mechanism designed to accelerate the acquisition of vetted drone technologies.

The P550 is classified as a Group 2 autonomous eVTOL system. It carries a multi-sensor payload capacity of up to 15 pounds and offers up to five hours of all-battery endurance. The system is designed for intelligence, surveillance and reconnaissance, precision strike, electronic warfare, and communications relay missions. AeroVironment says the platform can be reconfigured in the field in under five minutes without tools.

"In today's battlespace, adaptability is no longer an advantage, it's a requirement," said Wahid Nawabi, Chairman, President and Chief Executive Officer at AeroVironment. "The P550 gives maneuver forces the ability to rapidly reconfigure, extend their reach, and deliver effects across domains, all while operating in contested environments where speed and autonomy are decisive."

Trace Stevenson, President of Autonomous Systems at AeroVironment, added that operators "need systems that can adapt at the speed of the mission," describing the P550's field reconfiguration capability as a key operational benefit.

The P550 uses a modular open systems approach, supporting integration of third-party payloads, datalinks, and mission planning software.