The Hatch Report (Issue #11)
Today's issue features 10 DoD RFPs/RFIs, 14 industry updates, notable news from the past week, and three upcoming industry days.
RFIs/RFPs
1) PEO IEW&S Artificial Intelligence and Software at Pace (AIS@P) Draft RFP
Seeks to enable rapid AI/ML and software development awards for Project Lynchpin (the Army's AIOps+ PoR) and other entities, ensuring adaptability to evolving threats, swift vendor onboarding/offboarding, and seamless transitions in response to contractor performance issues. Responses due 6 Jan; industry day 7 Jan.
FYSA: Emelia Probasco (CSET) authored a standout report highly relevant to AIS@P. Offers a detailed case study on how 18th Airborne partnered with industry to develop and deploy AI/software to accelerate targeting timelines.
2) SOCOM Collaborative Autonomy Integration RFI
Opportunity to demonstrate autonomous systems and AI tech (TRL 3-6) that can collaborate to perform tactical tasks. Nomination packages are due by 23 Dec, with the Technical Experimentation 25.2 event set for 14-18 Apr at Avon Park Air Force Range, FL.
3) USAF/A5/7 “Air Force Futures” Wargaming Support RFI
The Directorate for Integration and Innovation (AF/A5I), within Air Force Futures, drives multi-domain total-force design through wargaming, analysis, and innovation. This contract will directly support those efforts.
4) NGA Automated Mapping RFI
Seeking automated services to produce maps/charts. Details the level of fidelity NGA wants in its products and integration requirements.
5) Space Force Portable Wearable Fitness Device (PWFD) RFI
The USSF seeks industry feedback on PWFDs and the software and infrastructure needed for the Continuous Fitness Assessment (CFA) program. CFA promotes ongoing physical activity over periodic fitness tests. Data will be securely stored to track performance, health goals, and compliance.
6) NSW Digital Advantage Sources Sought
Seeking solutions to enhance data-driven decisions, business performance, service delivery, managing knowledge systems, and agile learning. Responses due 11 Dec.
7) C5ISR Opportunities as of Nov 2024
Check the attachments tab for a useful overview PDF of contract statuses, PoCs, anticipated award dates, and more.
NOTE: ACC APG has a similar list which can be found - HERE.
Idea: Every PEO/Lab should have a standardized “opportunities” page on their website that clearly aggregates this type of information. If you’re already posting the information to sam.gov, just hang it somewhere on your website as well.
8) DARPA Rapid Inhibitor Discovery and Development pipeLine (RIDDL) RFI
Aims to enhance the safety and precision of gene-editing tools like CRISPR-Cas by improving reliability and enabling rapid response capabilities to address accidental or intentional misuse. Proposals must present transformative approaches for the rapid discovery, design, and development of novel inhibitors with enhanced activity, specificity, utility, and potency to mitigate gene-editing misuse. Responses are due by Dec 20.
9) OSD R&E Digital Engineering and Inclusion of Small Defense Contractors RFI
The data from this RFI will help create a briefing on small defense contractors' digital engineering capabilities and challenges in response to a HASC reporting requirement. It will assess barriers to adopting DoDI 5000.97, highlight initiatives fostering collaboration with large contractors, and address knowledge transfer, best practices, and inclusive participation across the Department. Responses due by 17 Dec.
10) DARPA Quantum Entanglement-Enhanced Novel Sensing (QUEENS) RFI
Seeks concepts that leverage quantum entanglement in sensing applications. Responses to this RFI will help guide future investments in quantum interconnects and novel quantum sensor architectures. Responses due by 15 Jan.
Industry Activity
11) Radiance Technologies Wins $49M DARPA SAFE-SiM Phase IV Contract
Only $2.3M in FY24 RDT&E obligated at the time of award. Original BAA launched in 2020. SAFE-SiM is an all-domain, Multi-Level Security (MLS)-enabled Modeling and Simulation (M&S) environment designed for mission-level analysis. It supports senior military decision-makers, technology developers, and acquisition professionals in CONOP development, force structure planning, resource allocation, and targeted technology insertion.
12) Latvia's Origin Secures $4.8M to Advance Tactical UAV Tech
Funding came from the European Defense Fund, with the defense ministries of Latvia, Lithuania, and Germany also supporting the project. The goal is to develop a man-portable UAV with a laser target designation capability (target weight is under 33 lbs). Big focus on reducing the systems’s SWaP while ensuring compatibility with standard NATO laser-guided precision munitions (unclear which ones exactly). Origon was founded in 2022, and has since raised $9.3M in funding, comprising equity investments from Change Ventures and Silicon Roundabout Ventures, as well as $1.9M in EU grants.
THR's Take: This capability would significantly enhance the lethality of the close combat force. Imagine the U.S. Army’s new platoon-level SSR drone seamlessly providing third-party targeting data directly to nearby vertically launched, extended-range ATGMs mounted on highly mobile JLTVs. This integration would theoretically allow friendly units to operate from better cover and concealment while dramatically accelerating the kill chain.
This requires the ability to seamlessly establish a resilient, localized targeting network optimized for contested environments, capable of transmitting UAV targeting data to PGMs without adding to the Soldier’s cognitive burden. By automating as much of the BMC2/kill chain as possible, Soldiers can focus on the fight rather than continuously monitoring UAV feeds or manually relaying targeting data to fire support units.
13) Red Cat’s Teal Drones Secures Army SRR Trache 2 Contract
Funding, quantities, and other specifics will be finalized over the coming months. While the Army has not confirmed if Teal will provide the sole platform for this phase, it reiterated its commitment to fostering competition and evaluating new technologies for future tranches.
For context, Skydio’s RQ-28A quadcopter was selected for SRR Tranche 1 and began deployment to soldiers in 2022.
The Army’s drone acquisition strategy prioritizes advanced aerial systems across operational levels:
Squads: Soldier Borne Sensors like Teledyne FLIR’s Black Hornet 4.
Platoons: Short Range Reconnaissance (SRR) drones.
Companies: Medium-range systems, such as Anduril’s Ghost X and Performance Drone Works’ C-100.
Brigades: Future Tactical Uncrewed Aircraft Systems (FTUAS).
Battalions: Long-range reconnaissance drones to replace or supplement General Atomics’ MQ-1C Gray Eagle.
Financial Outlook: A recent Seeking Alpha report estimated that winning the SRR Tranche 2 contract could add $79 million in revenue for Red Cat next year. Without the contract, 2025 revenue is still projected at $50–$55 million, a significant increase from $18.9 million TTM. Red Cat’s inclusion in the Russell Microcap Index has also boosted its visibility, attracting institutional investors and doubling its share price. Meanwhile, drones like the Edge 130 Blue and FANG are well-positioned to capture additional defense and tactical market share.
14) ArchiLabs is building an AI copilot for architects
Architectural drafting tools like Revit are clunky and difficult to quickly iterate in. With ArchiLabs’ AI automation tool, architects can put requests into a chat bar, and the AI is able to automatically run transaction-safe Python scripts to automate tedious tasks in CAD tools, making the collaboration process faster and more efficient.
15) Textron Awarded $10.8M Contract for USMC ARV 30mm Prototype
Funded by USMC FY25 RDT&E, ACC Detroit Arsenal oversees the contract, targeting completion by January 2026. The ARV-30, part of a purpose-built vehicle family replacing the LAV, features a 30mm cannon, anti-armor systems, advanced sensors, and modern C2 systems. USMC PEO Land Systems manages the program.
16) Fabricate Instantly Generates Engineering Drawings
Fabricate analyzes your existing drawings and automatically generates new ones matching your exact standards - from dimensions and annotations to views and formatting. It integrates directly with existing CAD software and maintains consistency across all drawings and manufacturing methods.
18) Invariant Corporation and Anduril Secure USMC C-UAS IDIQs
Each valued at up to $200M through October 2029, to develop the Counter-UAS Engagement System (CES), a key component of the Marine Air Defense Integrated System (MADIS).
Invariant's solution incorporates its Multi-Use Launch Electronics (MULE) and Optical Surveillance Infrared (OSIRIS) Imaging System on JLTV-towed trailers, while Anduril's system features their Anvil interceptor powered by the Lattice AI platform. CES targets Group 2-3 UAS threats and emphasizes open architectures to streamline upgrades / ECPs, ensuring adaptability to rapidly evolving threats.
18) Skydio raises $170 million extension round
Adds to the $230 million Series E it closed early last year. The new tranche of funding brings in strategic investors like Japanese telecom operator KDDI and Axon, the creator of the taser and other police tech. It also includes previous investors, like Linse Capital, which owns more than 21% of the drone maker.
KDDI spearheaded the extension round with a $60 million investment. The company plans to deploy Skydio drones at 1,000 sites across Japan and provide LTE connectivity for the devices.
Skydio is working to diversify its revenue streams and achieve profitability. In 2023, the company generated over $100 million in revenue, with 30% coming from software. Gross margins reached 38.1%, driven by a focus on software and improved production efficiency. Its military ambitions are gaining traction, with over half of the $1.2 billion in pending orders coming from defense clients.
19) CHAOS Industries Raises $145 Million Series B
CHAOS is developing Coherent Distributed Networks™, a new technology designed to improve the performance of sensors and defense systems. The first product in this category, Vanquish™, is a dual-use, multistatic commercial radar that provides early warning and tracking capabilities against unmanned aerial systems (UAS), missiles, and aircraft.
The Series B funding round was led by Accel, with participation from 8VC, Overmatch Ventures, Lerner Enterprises, and existing investors. CHAOS also announced that former U.S. Congressman and CIA veteran Will Hurd has joined as Chief Strategy Officer.
Founded in 2022, the company’s leadership team includes John Tenet, Dr. Bo Marr, Gavin Hood, and Brett Cummings, with experience at organizations like Epirus, Raytheon, Palantir, and 8VC.
20) BlueHalo Acquires VideoRay, Leading Underwater Robotics Provider
Following AeroVironment’s announcement to acquire BlueHalo, BlueHalo has purchased VideoRay, a maker of remotely operated vehicles for underwater tasks such as mine countermeasures and explosive ordnance disposal. VideoRay's technologies will become part of AeroVironment's portfolio once its acquisition of BlueHalo closes, expected in the first half of 2025.
Over the past 12 months, VideoRay has recorded $13.2 million in unclassified prime contract revenue. GovTribe data highlights a major opportunity: a potential $49 million production-other transaction agreement with the Navy to build and deliver Defender units for explosive ordnance disposal missions.
21) Meta plans to build a $10B subsea cable spanning the world, sources say
Though still in its early stages, this ambitious plan is driven by several strategic objectives. Sole ownership would secure dedicated capacity for Meta’s international traffic, which generates more revenue than its North American operations. The proposed route avoids geopolitical hotspots like the Red Sea and South China Sea, reducing risks tied to single points of failure. This aligns with the FCC’s recent focus on submarine cable licensing, emphasizing security and ownership concerns. Additionally, the cable’s endpoint in India presents opportunities for future data centers to support AI model training.
22) Beacon AI Raises $15M to Advance Dual-Use Aviation Technology
Led by Costanoa Ventures with significant participation from Scout Ventures, Sam Altman, and JetBlue Ventures, the Series A funding brings total investment to $20M.
Beacon’s platform improves safety and efficiency for commercial and defense pilots, focusing on aircraft common to both sectors. The funding will expand its team, advance DoD and commercial projects, and accelerate the rollout of flagship products: Murdock, an AI-powered pilot assistant, and Lighthouse, a data and flight management system.
23) Starfish Space raises $29M to launch satellite-servicing spacecraft missions
Shield Capital led the funding round, joined by Point72 Ventures, Booz Allen Ventures, Aero X Ventures, Trousdale Ventures, TRAC VC, and existing investors Munich Re Ventures, Toyota Ventures, NFX, and Industrious Ventures.
Starfish’s Otter spacecraft will support satellite life extension in GEO and debris removal in LEO, filling critical gaps in satellite operations.
Founded in 2019 by former Blue Origin engineers Austin Link and Trevor Bennett, the company previously raised $7 million in 2021 and $14 million in 2023.
Starfish recently secured three major contracts: a $37.5 million deal with the U.S. Space Force for a first-of-its-kind GEO docking mission, a life-extension services contract with Intelsat, and a $15 million NASA mission to inspect defunct satellites in LEO.
24) BAH, Toyon, KBR Wyle Services, and Epsilon Secure Navy ISR-T IDIQ MAC Follow-On
$88.8M ceiling over 5 years. Will support AoAs, engineering design, and deployment of IMINT, COMINT, SIGINT, and MASINT systems.
News Highlights
25) DoD, Hill eye CMMC tax credit for smaller defense contractors
The draft bill, the “Small Business Cybersecurity Act of 2024,” would allow companies with 50 or less employees to claim a tax credit of up to $50,000 for CMMC costs. Rep. Scott Fitzgerald (R-Wis.) is the sponsor on the legislation.
26) Army taps ‘Ghost Fleet’ authors to write novel on multi-domain warfare
August Cole and P.W. Singer are set to release Task Force Talon: A Novel of the Army’s Next Fight. Task Force Talon is the name of the Army unit that provides BMD for Guam. The upcoming book will draw on lessons from Field Manual 3.0, modern conflicts, and recent Army training. Through their Useful Fiction initiative, Cole and Singer continue to blend storytelling with strategy.
27) INDOPACOM is consolidating partner-nation networks into a single platform: the INDOPACOM Mission Network (IMN)
The IMN provides secure tools for information sharing, including file transfers, voice and video calls, chat, and a shared operational picture. It reached IOC in Feb during the U.S.-Japan Keen Edge exercise, which included Australian forces for the first time.
Since then, the IMN has been approved for use by the Five Eyes alliance and was featured in June’s Valiant Shield wargame. South Korea joined over the summer, with the Philippines expected next. INDOPACOM aims to link 23 nations to the network by the end of next year, pending NSA approval of its zero-trust security framework.
While IMN supports strategic and operational coordination, its design also allows integration with smaller-scale systems connecting military units. The U.S. Army Pacific is already testing these capabilities in coalition exercises, setting the stage for broader adoption across allied forces.
28) DASA Partners with IoT Tribe to Advance NATO and UK Defense Innovation
The UK’s Defence and Security Accelerator (DASA), akin to DoD’s DIU, has appointed IoT Tribe, a global technology accelerator based in London, to deliver business acceleration services.
IoT Tribe will lead the Janus Consortium, a group of specialist organizations working with DASA to strengthen the UK’s role in NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA).
The Janus Consortium includes:
Atmos VC: A deeptech investment firm.
The SETsquared Partnership: A leading UK start-up hub ranked third in Europe.
Arrow: A £30 billion electronics company specializing in defense and security supply chains.
The program will provide:
Dual-use technologies for defense and civilian applications.
Expert technical support.
Access to funding, including the NATO Innovation Fund.
Connections across NATO’s innovation ecosystem.
Tailored business acceleration through a three-month program at White City.
29) CRS Primer Highlights Key Congressional Considerations Related to Army sUAS Efforts
Addressing Technological Change: How the Army is incorporating the rapid pace of technological advancements into the requirements and acquisition processes for SRR, MRR, and LRR UAS.
Specialized Personnel: Whether the Army plans to establish a military occupational specialty (MOS) for sUAS operators and the associated costs of such an initiative.
Low-Cost Solutions: The Army's strategy for acquiring low-cost, off-the-shelf drones for operational use.
Inter-Service Coordination: The extent to which the Army is coordinating its efforts with the Marine Corps for acquiring short-, medium-, and long-range sUAS.
30) CRS Highlights Key Congressional Considerations for Navy's Distributed Maritime Operations (DMO) Concept
Information Sharing: Has the Navy provided Congress with a classified report report describing DMO in detail? Should the Navy release an unclassified description of DMO?
Analytical Rigor: What analyses supported the Navy’s decision to adopt DMO, and to what extent have these been validated through exercises?
Coordination: Is DMO aligned with other U.S. military Service operating concepts? What steps are being taken to ensure cross-Service coordination?
Budget and Programs: Are Navy budgets and programs adequately aligned with DMO? How might DMO impact shipbuilding, weapons acquisition, and associated industrial bases?
Weapon Constraints: Could the Navy's implementation of DMO be limited by the current inventory of long-range weapons? How quickly would procurement plans address these constraints?
Technology Risks: What are the technical challenges and risks related to communications and networking for DMO? Does the concept adequately address potential wartime network degradation?
Implementation Risks: How likely is DMO to become a "bumper sticker" concept, serving narrow interests rather than operational needs?
Missile Battery Proposals: Some observers have suggested adding missile batteries to Navy ships that currently do not have them. What are the relative merits of these proposals?
31) European tech funding stalls in 2024 but IPO window to open, report says
Europe boasts over 350 companies valued at $1 billion+, but IPOs remain scarce—only 15 countries have had $1B+ IPOs in the past decade, with Britain hosting nearly half, per Atomico.
Venture capital funding for European tech is projected to hit $45B in 2024, down slightly from $47B last year. That’s less than half of the $101B record in 2021 but triple 2015’s total.
Startup boom: Europe’s startup ecosystem has grown 4.7x in a decade, now including 35,000 early-stage companies, the most globally, says Atomico partner Tom Wehmeier.
IPO slowdown: With only 11 IPOs in 2024, this year could mark the lowest in a decade. Still, more companies are eyeing public markets, including Revolut, Zopa, and Bolt.
Klarna makes moves: The Swedish payments giant recently filed for a U.S. IPO, adding to the growing list of European firms seeking to go public.
Events
32) Army Enterprise Marketing Office (AEMO) Industry Conversation
22-23 Jan, Chicago, IL. Covers AEMO’s objectives and operational practices, including solicitation, awards, subcontracting, and contract administration.
33) SOCOM Small Business PEO Roundtable
16 Dec, virtual. Intended to be an opportunity for firms to gain a general overview of the PEO. Not meant to be an opportunity for firms to present their capabilities or to receive a forecast of upcoming requirements.
34) Expeditionary Contingency Medical Material (ECMM) Services Industry Day
17 - 18 Dec at JBSA-Lackland. The Air Force Installation Contracting Center (AFICC) 773d Enterprise Sourcing Squadron (ESS) in conjunction with the United States Air Force (USAF), the Air Force Reserve Command (AFRC), the National Guard (ANG), the US Army, and the JANUS Project will be hosting an Industry Day for the ECMM Services requirement. This requirement is currently a small business requirement; however, we are open to all acquisition strategies.