L3Harris Technologies won a $60 million three-year Army contract to develop an extended-range counter-unmanned aircraft system missile. The award moves the company into Phase 2 of the Army's XRC program, which prioritizes more capable and affordable drone defenses.
What's happening
- L3Harris received a $60 million contract from the U.S. Army on October 23, 2026.
- The three-year award covers Phase 2 development of the eXtended Range Counter-sUAS Missile (XRC) program.
- Work includes flight performance testing of the extended-range interceptor missile.
- The contract moves L3Harris forward in the Army's effort to field longer-range counter-UAS capabilities.
Why it matters
- Extended-range C-UAS missiles address an operational gap as adversaries deploy drones at greater standoff distances.
- The Army is prioritizing affordable counter-UAS defenses, and this contract funds development of a more cost-effective interceptor option.
- Flight testing in Phase 2 will validate performance specifications needed for potential production and fielding decisions.
- L3Harris maintains a key position in the Army's drone defense industrial base alongside existing air defense manufacturers.
Financial impact
- Contract revenue of $60 million will be recognized over the three-year performance period beginning October 2026, timing not disclosed for quarterly allocation.
- The award adds to L3Harris backlog and supports capacity utilization at the Grand Prairie, Texas facility.
- Phase 2 funding commits obligated cash for development and testing; total program ceiling value not disclosed.
The fine print
- Contract is valued at up to $60 million, suggesting potential performance-based adjustments or option years not disclosed.
- Phase 2 structure implies Phase 3 production contracts remain competitive and subject to future Army decisions.
Source: insidedefense.com · Oct 23, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.
