Modalai, Inc.

Modalai, Inc., a San Diego-based small business, manufactures autonomous systems, unmanned aircraft systems, and computer vision hardware and software for the Department of Defense as a prime contractor (65% of recent awards) and as a subcontractor on defense innovation programs. Modalai competes predominantly full-and-open on its prime footprint; recent awards carry no set-aside designation except for Small Business Innovation Research Phase awards, which are set aside for small businesses by statute.

Modalai's product and service portfolio centers on unmanned aerial systems (UAS), video transmission and receiver systems, artificial intelligence and machine learning services, and NDAA-compliant drone components. Recent prime work includes a $2.0 million Total Small Business definitive contract from the Department of the Army for the SCOUT (Swarm Convoy Operations with Unmanned Technology) program, awarded January 30, 2026, with completion in July 2027; two Small Business Innovation Research Phase II definitive contracts from the Army totaling $3.9 million (awarded August 2024 and August 2025, completing through February 2026 and August 2027); a $2.1 million Other Transaction Agreement from Washington Headquarters Service for electromagnetic-interference-resistant communications systems (completing December 2025); a $25 million Blanket Purchase Agreement from Army Forces Command for Blue List-compliant unmanned aircraft systems and parts (awarded August 2025, running through August 2030); and a Basic Ordering Agreement with PEO Aviation for drone procurement (awarded December 2025, no dollar ceiling specified, running through December 2030).

Customer concentration is heavily Army-dominated. The Department of the Army and its subordinate commands account for the top five customer positions by award count and value, collectively representing the majority of recent activity. Army Forces Command anchors the dollar picture with its $25 million BPA; Army Space and Missile Defense Command holds three awards worth $14.4 million combined; the Army core organization carries five awards valued at $7.8 million; and PEO Aviation accounts for two awards at $2.9 million. Washington Headquarters Service contributes $7.5 million across two awards. Modalai serves thirteen distinct federal customer agencies in total, but non-Army business is minimal and episodic.

Modalai holds four active indefinite delivery vehicles as prime: the $25 million Army Forces Command BPA for Blue List UAS procurement; a $3.04 million Other Transaction IDV with Space and Missile Defense Command for video transmitter and receiver systems (awarded May 2024, in production phase); a $1.67 million Other Transaction IDV with the Army awarded August 2021 for artificial intelligence, machine learning, computer vision, natural language processing, and predictive analytics services; and the Basic Ordering Agreement with PEO Aviation for drone and drone-component procurement.

Activity has grown substantially — two awards in 2020, one in 2021, then five in 2024 and eleven in 2025 — though the 2026 count reflects only recent months. Combined potential value across all awards stands at $57.9 million, with $25.4 million obligated to date. Two awards with combined potential value of $4 million reach ultimate completion within the next twenty-four months and face recompete risk.

In its subcontractor role, Modalai supplies UAS and UAS components to Booz Allen Hamilton on engineering development and integration programs (two sub awards, April and October 2025); provides drone development and indoor SLAM support to Amentum Services under C5ISR prototyping and integration work at Aberdeen, Maryland (September 2025); delivers UAS and components to Leidos under a Common Hardware Systems 6th Generation contract (September 2025); supplies UAV and UAS components to Valkyrie Enterprises on DOD line-funded work (September 2025); provides similar equipment to MIT Lincoln Laboratory under its federally funded research and development center operations (September 2025); performs worldwide field support for General Dynamics Global Force supporting Army Communications-Electronics Command (December 2025); and provides irregular warfare services to Johns Hopkins University Applied Physics Laboratory (October 2024). Modalai's subcontract footprint reflects its role as a specialized hardware and component supplier integrated into larger defense system development and operations efforts.