$5 billion contract to Raytheon for Coyote interceptor

Raytheon has been awarded a $5 billion contract by the Pentagon for production of the Coyote interceptor drone and Ku-band radars, according to the US DoD’s contract announcements from September 29. 

Work is set to be completed by 2033 and the contract is a Cost-Plus-Fixed-Fee arrangement, which means that Raytheon will receive funds equal to the costs of the work and materials involved, as well as a fixed fee on top of that. This fee represents the contractor’s profit. 

Both systems are used in the Fixed Site-Low, slow, small unmanned aerial system Integrated Defeat System (FS-LIDS) as well as the Mobile-Low, slow, small UAS Integrated Defeat System (M-LIDS). They form a part of the US Army’s Counter Small Unmanned Aerial System (C-SUAS) programme, which was initiated in 2016.

It covers five procurement areas and was set up to provide a networked system of systems to counter Group 1 and 2 UAS. The programme was accelerated in 2022 in response to the rising threat of drones, and the Major Capability Acquisition pathway (this just means it is a conventional procurement) was authorised to support delivery. Five areas are covered in the programme, “fixed-site protection, mobile counter-UAS capabilities, advanced radar detection, and portable solutions for dismounted forces.”

In December 2023, the US Government released a Notice of Intent to Sole Source, which indicated the anticipated requirement for Coyote and the Ku-band radar, it states the following:

“The estimated production requirement over five years (FY25-FY29) is:

System                                                               Minimum Quantity

Fixed Site Coyote Launcher Systems                          252

Mobile Coyote Launcher Systems                                 25

Coyote Kinetic Interceptor                                            6,000

Coyote Non-Kinetic Interceptor                                     700

Fixed Site KuRFS                                                          118

Mobile KuRFS                                                                33″

Raytheon received a similar contract on September 27, 2024, valued at $197 million for the Coyote, which followed on an earlier contract for $75 million, which covered 600 Coyote Block 2C interceptors.The Coyote has primarily deployed to the US Central Command, which has been facing an extensive array of drone threats. Several contracts have been awarded for M-LIDS and FS-LIDS, and Qatar is a significant export customer for the FS-LIDS.

Tech profile: FS-LIDS and M-LIDS

FS-LIDS is a modular short-range air defence platform designed to detect, track, and neutralise Unmanned Aerial Vehicles (UAVs) up to Group 3, including both large surveillance drones (like the Orlan-10) and small commercial/hobby drones. Its primary sensor is the Raytheon Ku-band Radio Frequency Sensor (KuRFS), an Active Electronically Scanned Array radar that offers 360∘ coverage. It is able to detect and classify small drones out to 15 km. 

The system uses a layered approach, integrating other sensors, such as electro-optical cameras to enhance its ability to find small targets. For engagement, FS-LIDS employs the Coyote drone—a small, expendable, jet-engine-powered interceptor launched from a pneumatic tube. The latest Coyote Block 2+ variant can hit targets up to 15 km away. FS-LIDS is also equipped with an Electronic Warfare (EW) system to jam and degrade the control links of hostile UAVs, which is supplied by SRC. Northrop Grumman provides the command and control infrastructure. M-LIDS provides similar capabilities, but is mounted on an M-ATV protected mobility vehicle and carries an M230LF 30×113 mm cannon as well as a 12.7 mm heavy machine gun. 

Calibre comment

The war in Ukraine gave rise to many claims that the West was not ready for the type of war emerging from that conflict. In some cases, and many countries, this is accurate. However, the C-SUAS programme is some evidence that the US Army at least was aware of the threat posed by drones and working to address them. Other assets like the Sergeant Stout air defence systems were introduced on accelerated time tables to troops in Europe. Soldiers in the Middle East have operationally deployed M-LIDS and the service is looking to add the capability to Strykers. The service has anticipated the threat of drones and poured funding into it, which is reflective of the level of effort other forces would have to follow to provide a comprehensive C-UAS solution. 

By Sam Cranny-Evans, published on October 1, 2025. The lead image shows a soldier from Task Force Reaper guiding an M-LIDS in to position before loading onto the Heavy Equipment Truck Transport in the CENTCOM area of responsibility. Credit: US Army photo by 1st Lt. Michael Needham