The Defense market is open and looking for innovation. It's doors are open and the schedule is public.
Right now the Department of War is buying technology from newer and smaller businesses. Big companies cannot build it fast enough, cheap enough, or in enough volume to matter in a contest environment. The DoW knows this and they've explicitly said this in their programs.
This means that if you're a veteran founder building in the defense-adjacent space, you have a real potential to fit into what the military is buying. You can build towards your first military contract.
Right now one of the largest prize challenges is open, but this article isn't about applying to it, it's about pivoting yourself for the military's needs so you're ready when the next door opens.
Right now the Department of War is buying technology from newer and smaller businesses. Big companies cannot build it fast enough, cheap enough, or in enough volume to matter in a contest environment. The DoW knows this and they've explicitly said this in their programs.
This means that if you're a veteran founder building in the defense-adjacent space, you have a real potential to fit into what the military is buying. You can build towards your first military contract.
Right now one of the largest prize challenges is open, but this article isn't about applying to it, it's about pivoting yourself for the military's needs so you're ready when the next door opens.
The Next Contract Could Be Yours, But This One's Not
Let me reiterate that this contract won't be for you.
This contract requires production-ready systems, active manufacturing lines and verifiable production capacity. The DoW makes it pretty clear in their statement:
This contract requires production-ready systems, active manufacturing lines and verifiable production capacity. The DoW makes it pretty clear in their statement:
conceptual, developmental, or prototype-only solutions will not be considered.
This is not the door you walk through today, it's the one you can begin to build toward.
It's time to start reading about what they are buying. This is how you avoid building things the military has no interest in. That's a mistake that kills more defense startups than any technical failure.
Read this as an intelligence brief, understand that there is opportunity.
It's time to start reading about what they are buying. This is how you avoid building things the military has no interest in. That's a mistake that kills more defense startups than any technical failure.
Read this as an intelligence brief, understand that there is opportunity.
What the Department of War is Buying Right Now: SWAP-USV Sprint 2
The Department of War Innovation Unit (DIU) has opened up Sprint 2 of a 12 month Prize challenge. This one is called SWAP-USV Sprint 2.
What is SWAP-USV? SWAP-USV stands for suitable warfighting adaptive payloads - unmanned surface vessel. In essence it means the DoW is looking for a robot boat that can act as a flexible platform to carry and deploy different types of payloads (like drones or weapons systems). Think of a RHIB or an LCAC that is remote controlled or autonomous and can travel quite a distance to deploy its payload. The military isn't just looking at conversions though, they're also looking at new purpose built hulls. These SWAP-USV's need to be capable of detecting and defeating drones, helicopters and other airborne threats at sea.
This challenge can earn you $40 million dollars in prizes and $200 million dollars for a follow-on prototype and production contracts. The deadline is November 30th, 2026.
The first sprint was in August 2026, focusing on BLOS FPV drone launch and surface interdiction.
This sprint running until November 30th, 2026 being integrated counter-air systems.
The final sprint ending in spring 2027, multi-domain swarm orchestration.
What is SWAP-USV? SWAP-USV stands for suitable warfighting adaptive payloads - unmanned surface vessel. In essence it means the DoW is looking for a robot boat that can act as a flexible platform to carry and deploy different types of payloads (like drones or weapons systems). Think of a RHIB or an LCAC that is remote controlled or autonomous and can travel quite a distance to deploy its payload. The military isn't just looking at conversions though, they're also looking at new purpose built hulls. These SWAP-USV's need to be capable of detecting and defeating drones, helicopters and other airborne threats at sea.
This challenge can earn you $40 million dollars in prizes and $200 million dollars for a follow-on prototype and production contracts. The deadline is November 30th, 2026.
The first sprint was in August 2026, focusing on BLOS FPV drone launch and surface interdiction.
This sprint running until November 30th, 2026 being integrated counter-air systems.
The final sprint ending in spring 2027, multi-domain swarm orchestration.
What Is The DoW Asking For?
This is not research and development. This is a product that they want ready in 120 days, not 2-5 years. The core requirement is an integrated solution: USV platform, launcher, and effector payload submitted as one package. Proposals that do not have the full package will not be evaluated.
The requirements:
The requirements:
- 200+ nautical mile range
- 10+ knots sustained cruise speed
- 360-degree detection, tracking, and identification of airborne and surface threats
- engagement of Group 1-3 UAS and rotary-wing aircraft at ranges greated than 3 nautical miles
- field-rearming by a two-person crew with minimal support equipment
- MOSA-compliant C2 interoperable with Project AVO
- Forward fielding in 120 days
Strongly desired:
- Group 5 UAS engagement
- Transport in 20 ft or 40 ft ISO containers, fully mission-capable
- Operation in GPS-denied and DDIL (denied, disrupted, intermittent, limited) environments
- Offensive capability against surface threats
The DoW has stated repeatedly that cost-effectiveness matters more than platform performance. A $50 million dollar USV that shoots down $2,000 drones is a failure. A $500,000 one is a win.
Why Does this Matter Even if You Can't Apply?
1. This is what the military is actively looking for now: This isn't a 10 year acquisition cycle. It's a 12-month prize challenge with sprints. If you're wanting to build for defense, this is what the pipeline looks like.
2. The tech isn't new or exotic: Low cost sensors, autonomous platforms, resilience in degraded environments, modularity for fast rearm. These are small things a focuse team can work towards. You don't need to be Boeing or Raytheon.
3. The cost-exchange is the guide: Every DoW request you will read is going to say "we have this but we need It to be 10x cheaper." If you cannot make a product that is cheap and easy to produce, you need to change your tactic. It will be difficult to buy regardless how impressive the tech is.
4. They want non-traditional venders: The DoW is purposely looking for companies who haven't sold to the DoW before. They want you into the ecosystem. They are creating these prize challenges because the traditional path can be difficult.
2. The tech isn't new or exotic: Low cost sensors, autonomous platforms, resilience in degraded environments, modularity for fast rearm. These are small things a focuse team can work towards. You don't need to be Boeing or Raytheon.
3. The cost-exchange is the guide: Every DoW request you will read is going to say "we have this but we need It to be 10x cheaper." If you cannot make a product that is cheap and easy to produce, you need to change your tactic. It will be difficult to buy regardless how impressive the tech is.
4. They want non-traditional venders: The DoW is purposely looking for companies who haven't sold to the DoW before. They want you into the ecosystem. They are creating these prize challenges because the traditional path can be difficult.
So... What Will You Actually Build?
Here are the patterns this challenge tells you to look for:
Low cost per unit of effect. Not necessarily cheap, but a good system that is 10x less than the current system is a winning story.
Production, not prototype: The DoW wants to know that you can build these products or systems immediately. They are impatient and want it now.
The DoW wants open systems: They want to be able to plug your system into theirs and swap out parts as the technology evolves.
Resilience in bad conditions: Remember, they will be out to sea, salt water is harsh on anything. It needs to work when GPS is jammed and when the environment is physically hostile.
120 days to readiness: Your product needs to be viable. Can you supply it now, not when the award lands?
Low cost per unit of effect. Not necessarily cheap, but a good system that is 10x less than the current system is a winning story.
Production, not prototype: The DoW wants to know that you can build these products or systems immediately. They are impatient and want it now.
The DoW wants open systems: They want to be able to plug your system into theirs and swap out parts as the technology evolves.
Resilience in bad conditions: Remember, they will be out to sea, salt water is harsh on anything. It needs to work when GPS is jammed and when the environment is physically hostile.
120 days to readiness: Your product needs to be viable. Can you supply it now, not when the award lands?
What Other Military Events should You Watch?
While this sprint ends soon, Sprint 3 happens in Spring 2027 with a focus on multi-domain swarm orchestration.
This is only one program, but there are plenty others to look at: xTechSearch, AFWERX, NavalX, SOFWERX, SBIR / STTR, DIU.
You don't need to watch or apply to all of them, but it's great to see that they exist. You can check out this post for other startup ideas that relate to some of these programs.
The doors are open and it's worth knowing now what the DoW is looking for. Defense Tech is growing and the military is buying. Do you want to be the business they buy from?
We track DIU solicitations, SBIR cycles, xTech competitions, and other defense-tech entry points on our calendar. If you're a veteran founder building toward these opportunities, let us know — we want to feature more defense-tech founders.
This is only one program, but there are plenty others to look at: xTechSearch, AFWERX, NavalX, SOFWERX, SBIR / STTR, DIU.
You don't need to watch or apply to all of them, but it's great to see that they exist. You can check out this post for other startup ideas that relate to some of these programs.
The doors are open and it's worth knowing now what the DoW is looking for. Defense Tech is growing and the military is buying. Do you want to be the business they buy from?
We track DIU solicitations, SBIR cycles, xTech competitions, and other defense-tech entry points on our calendar. If you're a veteran founder building toward these opportunities, let us know — we want to feature more defense-tech founders.