Release
Immediate Release

DOD Announces $84.4 Million in Defense Production Act Title III COVID-19 Actions

July 10, 2020

Today, the Department announces seven Defense Production Act Title III actions to help sustain and strengthen essential domestic industrial base capabilities and defense-critical workforce in the small unmanned aerial systems, space technology, and shipbuilding industries.  These actions will help to retain critical workforce capabilities throughout the disruption caused by COVID-19 and to restore some jobs lost because of the pandemic. The Department remains closely partnered with FEMA and HHS, providing almost $2.9 billion in life-saving medical services, supplies and equipment to service members and federal agencies in the nation's whole-of-government approach to the coronavirus pandemic.

DOD Announces $13.4 million DPA Title III Investments in U.S. Small Unmanned Aerial System Industrial Base

As part of the national response to COVID-19, and to support the domestic small unmanned aerial system (sUAS) industrial base, the Department of Defense awarded contracts totaling $13.4M to five companies to sustain the capabilities of this critical domestic industrial base. Using funds authorized and appropriated under the CARES Act, these DPA Title III investments will further enhance the U.S. warfighter’s situational awareness, improve human-machine teaming, and provide engineering support for aiding the integration of sUAS capabilities into DOD programs.

The DPA Title III funds across five companies saved 14 jobs, created 20 new positions, and will support continued advancement of capabilities providing the companies additional paths for recurring revenue. The following is an overview of each company’s award:

  • AirMap, located in Santa Monica, California, received $3.3M to aid product development and engineering support for integration of sUAS mission planning, post-mission analysis, and unmanned traffic management software.
  • ModalAI, located in San Diego, California, received $3M to develop their next generation U.S.-made flight controller that will enable advanced autonomy including GPS-denied navigation, and all-environment obstacle avoidance. 
  • Skydio, located in Redwood City, California, received $4M to improve the flight controller hardware/software and data link for their sUAS so that highly capable components can be purchased and used across U.S. Government unmanned systems.
  • Graffiti Enterprises, located in Somerset, New Jersey, received $1.5M to modify their commercial data link for DoD’s sUAS use including operation in restricted frequency bands, reduction in the size, weight, and power of the hardware, and software developments to improve security and resiliency of their data link.
  • Obsidian Sensors, located in San Diego, California, received $1.6M to build a low-cost, dual thermal sUAS camera that can be mounted onto a stabilization gimbal and then integrated and flown on small, packable, ISR systems.

The five awards were provided under Defense Innovation Unit’s (DIU’s) Commercial Solutions Opening. DIU is leading the Department’s UAS framework development intended to provide secure, trusted sUAS capability to the Department of Defense and other Federal Government stakeholders.

DOD announces $15 million Defense Production Act Title III Agreement with LeoLabs to Strengthen Domestic Space Industrial Base

As part of the national response to COVID-19, the Department of Defense entered into a $15 million agreement with LeoLabs, Inc. to ensure the continued viability of space surveillance capability through the operation and maintenance of a world-wide highly capable phased-array radar network.  The ability to surveil and analyze spacecraft in low earth orbit is essential to national defense. LeoLabs, Inc. is the only domestic commercial supplier with demonstrated capability in this critical area.

Using funds authorized and appropriated under the CARES Act, this DPA Title III investment will offset direct workforce and financial distress brought about by the coronavirus pandemic to a sole-source capability within the defense industrial base and ensure resultant critical capabilities are retained within the U.S.

LeoLabs, Inc. is based in Menlo Park, California, with operating locations throughout the United States.

DOD announces $56 million Defense Production Act Title III Agreement to Strengthen Domestic Shipbuilding Industrial Base

As part of the national response to COVID-19, the Department of Defense (DOD) entered into a $56 million agreement with ArcelorMittal Inc. to sustain critical domestic industrial base shipbuilding capability and capacity.  This investment will expand ArcelorMittal’s plate processing footprint and heat-treating capability, subsequently increasing its alloy steel plate production and ensure the U.S. Government gets dedicated long-term industrial capacity to meet the needs of the nation.

Using funds authorized and appropriated under the CARES Act, this DPA Title III investment will protect jobs in a region hit hard by the COVID-19 pandemic and ensure critical capabilities are retained in support of U.S. Navy operational readiness.

ArcelorMittal is a steel and mining company headquartered in Chicago, Illinois. The principal place of performance is at ArcelorMittal’s facility in Coatesville, Pennsylvania.

Website resources:

DOD Coronavirus Update   

DOD Industrial Policy

Joint Acquisition Task Force 

Defense Production Act Title III