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The Pentagon Is Trying Out a New Contracting Process with Anduril

The Pentagon is leaning heavily on Anduril’s expertise in anti-drone warfare—negotiating several “enterprise contracts” that allow for flexible spending.

Drones have become ubiquitous across the modern battlefield. In Ukraine and Iran, the drone has proven cheap and scalable and hard to defend against. Traditional air defense systems, well equipped for confronting fighters and bombers, are just too slow to handle the swarm tactics that drones enable. The result is that the Pentagon is shifting towards software-driven counter-UAS systems, which is reflected in the new contract awarded to Anduril for the company’s “Lattice” system. 

The Pentagon Could Spend Billions on Anduril Drones

Anduril has won an $87 million task order under “Joint Interagency Task Force 401,” which could include investments of up to $20 billion over 10 years. That funding is not guaranteed. Instead, it is a contract vehicle—allowing government buyers to purchase pre-approved Anduril systems without onerous bureaucracy. In essence, the deal lowers friction in procurement, making future procurement more likely. 

Lattice is an AI-enabled command-and-control (C2) platform that integrates sensors (radar, cameras, SIGINT) with effectors (jammers, interceptors, kinetic systems). The core functions of the program include detecting and tracking drones, classifying threats, and recommending or executing engagement. The key advantage is that Lattice operates in seconds, not minutes, with a sensor-to-shooter loop that AI compresses. 

Software is increasingly relevant to counter drone operations. The emerging counter-drone problem is not just kinetic but informational. The current challenge is in identifying real threats among clutter and coordinating responses across units. Lattice addresses these challenges with data fusion and increased decision speed. The system also signals a shift, from platform-centric warfare to network-centric warfare, as warplanners work to address the ubiquity of drones. 

“Enterprise Contracts” Are Meant to Simplify DoD Acquisitions

The architecture of the contract shows that the Army is moving towards enterprise-level contracts, with the goal of reducing bureaucracy and accelerating acquisition while imposing standardized systems across the force.

The Army has signed 14 enterprise contracts in the last eight months—consolidating 118 separate contracts and allowing for an 88 percent reduction in contract volume. The new Anduril contract is a prime example of the consolidation: the company previously had 120 separate Army contracts, which have now been unified into one access point. 

Operationally, the shift towards enterprise-level contracts is significant, enabling rapid fielding of counter-drone tech, interoperability across services, and scalable deployment across theaters. This is especially relevant for CENTCOM and the Indo-Pacific theater, and in theory, will help reduce the time between threat emergence and capability deployment. 

The Anduril deal also follows a similar $10 billion Palantir enterprise deal, which signals the Pentagon is leaning heavily into commercial tech firms. This maintains competition, showing that multiple vendors can still compete within contract frameworks. And it opens the door for rapid iteration and quick software updates. 

Strategically, counter-UAS is becoming a baseline requirement not just some niche nice-to-have. Lattice, and comparable systems, could become standard across DoD, reflecting a broader shift as AI and autonomous systems become central to tactical efforts. The urgency of the shift is clearly driven by real-world conflicts, like Ukraine and Iran, which have demonstrated concretely the relevance of drones on the modern battlefield. 

In essence, the Anduril enterprise contract isn’t just a headline about a contract, but an indication that doctrine is shifting, with the US military moving towards faster procurement and AI-assisted decision-making at scale. 

About the Author: Harrison Kass

Harrison Kass is a senior defense and national security writer at The National Interest. Kass is an attorney and former political candidate who joined the US Air Force as a pilot trainee before being medically discharged. He focuses on military strategy, aerospace, and global security affairs. He holds a JD from the University of Oregon and a master’s in Global Journalism and International Relations from NYU.

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