Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
ARLINGTON, VA - AeroVironment Inc. (NASDAQ:AVAV), a leading manufacturer of unmanned aircraft systems, announced today that the U.S. Government Accountability Office (GAO) has denied a protest against the U.S. Department of the Army for awarding the company a significant contract. The contested contract, an indefinite delivery, indefinite quantity (IDIQ) contract with a ceiling value of $990 million, was granted to AeroVironment on a sole-source basis for their Switchblade systems.
The protest, filed on September 6, 2024, challenged the Army's decision to award the contract to AeroVironment. However, with the GAO's decision to deny the protest, the company is set to proceed with fulfilling its obligations under the contract. The Switchblade systems, which are tactical missile systems designed for use by the military, are expected to be delivered throughout the term of the contract.
AeroVironment, with its business headquarters in Arlington, Virginia, and incorporated in Delaware, specializes in the design and production of unmanned aircraft systems often used for surveillance and reconnaissance by military forces. The company's fiscal year ends on April 30, and it is recognized under the Standard Industrial Classification code 3721 for Aircraft Manufacturing.
The NASDAQ-listed company's stock, trading under the ticker AVAV, is anticipated to be influenced by this development, as securing a government contract of this magnitude is a significant event for stakeholders.
The award of the contract reaffirms the company's position in supplying tactical missile systems to the U.S. military, a critical component of modern warfare.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.