AeroVironment, Inc. (Nasdaq: AVAV) and Parry Labs are progressing development of modular mission systems integrated into the P550 small uncrewed aircraft system (UAS), part of the U.S. Army's Long-Range Reconnaissance (LRR) program -- a key initiative to equip maneuver forces with adaptable, battlefield-ready reconnaissance technology.

Contract & Strategic Mission Partners

Under a three-year Other Transaction Agreement with the U.S. Army, AeroVironment and Parry Labs are set to deliver the newly developed P550 system with advanced modular components tailored for reconnaissance, intelligence and force protection missions. The initial contract carries a base value of $13.2 million, with options potentially bringing the total award to $42 million as the Army scales its capabilities.

Parry Labs contributes its expertise in modular open systems architecture (MOSA) mission systems -- digital engineering, rugged hardware and adaptable software -- which enables rapid payload reconfiguration and upgrades to support evolving mission needs.

P550: Modular, Autonomous & Mission-Ready

The P550 UAS is a Group 2 eVTOL (electric vertical take-off and landing) unmanned aircraft designed from the ground up for modularity and battlefield flexibility. Built on a MOSA framework, the platform supports quick-connect payloads, autonomous operation, and scalable sensor and communications packages -- capabilities critical for long-range reconnaissance and contested environments.

AeroVironment's vice president of Small Unmanned Aerial Systems has emphasized that mission flexibility and battlefield adaptability are central to the Army's LRR needs, with P550 envisioned as a versatile ISR (intelligence, surveillance and reconnaissance) asset that can also carry payloads for targeting and force protection.

The open modular approach allows the Army to swiftly install, update or exchange mission equipment -- from advanced sensors to AI-enabled software packages -- without major redesign or logistical overhead, significantly enhancing operational readiness.

Operational Context & Defense Impact

The LRR program emerged as part of the Army's broader refocus on autonomy and tactical UAS deployment following restructuring of earlier tactical UAS efforts. Critics of prior programs cited slow development and outdated designs; the P550 initiative represents a more agile procurement model designed to align capability with rapid operational needs.

Initial deliveries of the P550 to Army units -- which include training, documentation, and integration support -- highlight AeroVironment's commitment to both field readiness and sustainment. The system's autonomous features and quick-connect design are aimed at minimizing soldier exposure in contested settings while maximizing situational awareness and mission effectiveness.

The post Parry Labs Advances Modular Mission Systems in AV's P550 for U.S. Army Long-Range Reconnaissance Program appeared first on PRISM MarketView.

COMTEX_471889118/2927/2026-01-09T11:31:24