OSI Systems has secured a major defense contract worth up to $235 million for long-range radar tracking production, marking a significant win for the company's security division in the counter-drone and airspace surveillance market.
Contract Details
The award comes in the form of an Undefinitized Contract Action (UCA) — a procurement mechanism commonly used by the U.S. government that allows work to begin before all contract terms are fully negotiated. The not-to-exceed value is set at approximately $235 million, signaling a substantial investment in radar-based tracking infrastructure.
UCAs are typically issued when the government needs to move quickly on a defense priority, suggesting this radar tracking capability is considered time-sensitive by the contracting agency.
What This Means for Counter-Drone Operations
Long-range radar tracking is a cornerstone technology in modern counter-UAS (C-UAS) systems. As unmanned aerial vehicles become more prevalent — from commercial delivery drones to military-grade UAVs — the ability to detect, track, and classify airborne threats at extended ranges has become a national security priority.
Radar systems of this type are capable of monitoring large swaths of airspace, identifying unauthorized or hostile drone activity, and feeding targeting data to interdiction systems. The technology plays a critical role in protecting military installations, critical infrastructure, and high-value assets from UAV threats.
About OSI Systems
OSI Systems is a California-based technology company operating across several security and inspection verticals. Its security division — which includes the Rapiscan and AS&E brands — specializes in threat detection equipment used in defense, border security, and transportation applications. This latest contract further cements the division's role as a key supplier to U.S. defense and security agencies.
Growing Demand for Airspace Security
The contract reflects a broader trend of accelerating government investment in airspace monitoring and counter-drone technology. With drone incursions at airports, military bases, and sensitive facilities making headlines with increasing frequency, agencies are under pressure to deploy robust detection and tracking solutions.
- Contract Type: Undefinitized Contract Action (UCA)
- Value: Up to $235 million (not-to-exceed)
- Awardee: OSI Systems Security Division
- Focus Area: Long-range radar tracking production
As the counter-UAS industry continues to expand, contracts of this scale signal that government investment in airspace security infrastructure is moving from early-stage procurement into full-scale production — a strong indicator of where the defense drone sector is heading in the years ahead.