COCO ISR: Shield AI and V-Bat picked for US Navy

The US Navy has selected Shield AI and its V-BAT drone as one of several industry partners to compete for task orders under a new $800 million ISR contract. The agreement utilises a Contractor-Owned, Contractor-Operated (COCO) model, a procurement strategy that is gaining popularity in western MoDs.

By Sam Cranny-Evans, editor of Calibre Defence, published on April 24, 2026.

Shield AI has been selected to join the US Navy’s uncrewed aerial system ISR as a service framework. According to an April 20 press release, the company will provide its V-Bat drone under a COCO model.

Shield AI will have the opportunity, alongside at least three other vendors, to compete for up to $800 million in task orders. In its press release, the company emphasised the V-Bat’s operational record, including the interdiction of “100,000 lbs [45,359 kg] of narcotics in the Caribbean and Pacific.”

The US government announcement explains that the vendors will support domestic and coalition militaries in both combat and contingency operations. It also anticipated a start date of September 1, 2026, and an end date of August 31, 2031.

Under the COCO model, successful contractors will be responsible for the resources needed to produce ISR data. Including:

Trained personnel
Non-developmental drones
The appropriate certifications
Operation and maintenance of the drones
Spares and maintenance
Product support.

They will be expected to provide round the clock “imagery and other sensor capability” in support of ISR missions. This indicates that platforms like the V-Bat will be required to run missions with radar and potentially signals intelligence payloads. The ultimate processor of that data appears to be the US Navy. However, if the contractor is expected to interrogate the data, it will add to the complexity of delivery.

What other companies provide ISR to the US Navy?

The COCO contracts for ISR are not new to the US Navy. It uses rolling admission notices to update suppliers under the framework. Those notices are issued by the Naval Air Systems Command Program Executive Office, Unmanned Aviation and Strike Weapons. The most recent admission, which brought AeroVironment and Shield Ai into the fold, states: “Contracted services would be in direct support of ISR missions requiring around the clock imagery and other sensor capability in support of those missions.”

There are now four companies on the framework:

Shield AI: Admitted to the competitive pool on April 20, 2026, Shield AI is the most recent addition to the framework. The company provides its V-BAT platform, a “tail-sitter” vertical take-off and landing drone. Unlike traditional fixed-wing drones that require launchers or recovery nets, the V-BAT takes off like a helicopter and transitions to horizontal flight. It has reportedly performed well in Ukraine and arctic conditions.
AeroVironment: AeroVironment officially joined the 2026 pool on April 1, introducing the JUMP 20-X, which is maritime-hardened evolution of its proven JUMP 20 system. The X variant is specifically configured for the maritime domain with enhanced sensors and a heavy-fuel engine designed for shipboard safety.
Textron Systems: Re-confirmed through a rolling admission notice on April 17, 2026, Textron has long been a staple of the Navy’s ISR fleet. It provides the Aerosonde Mk. 4.7 drone that has logged hundreds of thousands of hours across dozens of ships. Textron’s strength lies in its maturity and footprint; the Aerosonde is already integrated into the operations of at least 11 Navy vessels.
Insitu: As the original architect of the COCO model, Insitu saw its framework participation renewed for the 2025/2026 cycle. It brings the Integrator and the ScanEagle to the mission.

Calibre comment: Project CABOT and the UK’s COCO effort

The Jump-20 vertical take-off and landing (VTOL) UAS shown here could be a competitor for Project Corvus.

The maritime version of the Jump-20 vertical take-off and landing UAS shown here is one of the options for the COCO ISR programme. Credit: AeroVironment.

Under Project CABOT, the UK MoD is hoping to acquire a fleet of naval intelligence vessels under a contractor-owned, contractor-operated model. Theoretically, phase 1 of the project is looking for distributed anti-submarine warfare sensors that can monitor the UK’s waters. The data collected by those sensors would be triaged by artificial intelligence and fed to remote operations centres staffed by the Royal Navy.

It was initially expected to be deployed from early 2026 with a contract value of £20 million. The tender for the programme was released in late-2025 looking for ten initial partners. After that, the Royal Navy planned to down-select companies and award them call-off contracts.

For the Royal Navy, the COCO model will help ease the manpower burdens that it is facing. It has recently been reported that extended operations of the UK’s nuclear deterrent as well as reduced crewing levels were stretching the Navy’s ability to respond. At the same time, it is facing a determined threat from Russia’s GUGI, including a recent operation to prevent the force from sabotaging British deep-sea infrastructure. So, much like the US Navy, the UK’s demands are real and pressing. Time will tell whether the COCO model can meet them.