US DoW selects Xtend for multi-million-dollar drone swarm contract

The Tampa-based subsidiary of Israel-based loitering munition specialist Xtend Reality has received a multi-million-dollar fixed-price contract from the US Department of War (DoW) to rapidly develop and deliver Affordable Close Quarter Modular Effects FPV Drone Kits (ACQME-DK), the company announced on 11 November 2025.

The contract was issued by the Capability Development & Innovation (CD&I) Directorate of the Office of the Assistant Secretary of War (OASW) for Special Operations/Low-Intensity Conflict (SO/LIC). Under it next-generation ACQME-DKs with training will be purpose built and provided to DoW small tactical team operators to help increase their precision strike lethality and survivability when conducting assigned irregular warfare operations in complex urban terrain and rural confined spaces.

Xtend will also deliver training, spares, maintenance and production from its Tampa headquarters in Florida, providing an important domestic source of supply.

A key focus for Xtend is providing one‑way attack loitering munitions that deliver lethality at a low cost per kill. A company spokesperson noted to ESD that there two key reasons for Xtend picking up the ACQME-DK contract.

Firstly, “This is the first operational system in the world that allows one operator to command and deploy swarms of AI-enabled tactical drones remotely, with resilient fibre-optic-plus-RF dual-comms precision and zero-latency control,” said the spokesperson.

“Most importantly, they also feature Xtend’s ESAD [Electronic Safe and Arm Device] high‑voltage fuse, which is the only US-approved high voltage fuse in this category,” the spokesperson added. “The high-voltage fuse ensures greater safety for users and it was the main reason Xtend was chosen here.”

Xtend’s ACQME-DK solution is effectively a modular vertical take-off and landing (VTOL) drone with a munitions kit. It can be rapidly reconfigured in the field as the mission requires (day/night reconnaissance and surveillance, reloadable reusable distraction device, lethal inert training payload, lethal payload), with its main emphasis on the lethal attack role. The system’s design and logistics have been optimised to reduce the cost per kill and facilitate a high operational tempo.

“After years of real combat deployments across five war zones, this is not a concept; it is a battle-proven system, lessons learned and applied, that gives warfighters reach and unparalleled tactical overmatch,” Aviv Shapira, Xtend CEO and co-founder, was quoted as saying in a company press release.

“Our XOS [the XTEND Operating System] unifies sensors, radars, payloads, and third-party features and apps into a single AI-driven mission backbone,” added Rubi Liani, Xtend co-founder and CTO. “This programme extends that advantage deeper into complex terrain, scaling both precision and survivability through fully co-ordinated swarm behaviour.”

Xtend has provided more than 10,000 drones/loitering munition systems for deployment across the air, land and sea domain in more than 32 countries. Scaled through its local-production model and a global manufacturing network spanning the United States, Israel, Europe and Singapore, XTEND is now expanding into the private security and critical infrastructure protection markets.