Teal Drones Inc.

Teal Drones Inc., a self-certified small disadvantaged business based in South Salt Lake, Utah, designs, manufactures, and integrates small unmanned aircraft systems (sUAS) and associated payloads, sensors, and software for federal government customers as a prime contractor (77% of recent awards) and as a subcontractor on defense programs. Teal Drones is a subsidiary of Red Cat Holdings, Inc., competing predominantly under total small business set-asides on individual purchase orders and delivery orders, with a secondary footprint in full-and-open competitive procurements through indefinite delivery vehicles and blanket purchase agreements.

Teal Drones' capability portfolio centers on Blue UAS-certified drone platforms engineered to meet strict Department of Defense compliance standards. Named representative work includes a $750 thousand total small business set-aside purchase order from the Air Force Academy (awarded September 30, 2025) for 74 Teal 2 drones to support airmanship training, a $1.7 million BPA call from Customs and Border Protection (awarded September 19, 2023) for Blue sUAS platforms supporting border security operations, and a $240 thousand total small business delivery order from the Virginia Army National Guard (awarded June 3, 2025) for 18 lightweight Blue UAS under GSA Multiple Award Schedule. The company manufactures the Teal 2 and Golden Eagle platforms equipped with thermal imaging, electro-optical/infrared gimbals, advanced communications systems, and control station software. A $750 thousand procurement from the Air Force Academy notes this represents final inventory acquisition before the contractor discontinues the Teal 2 platform in favor of upgraded systems.

Customer concentration is heavily skewed toward the Department of Homeland Security's Customs and Border Protection, which accounts for 7 awards valued at $93.1 million combined potential value — roughly 71% of Teal Drones' total award footprint. The top five customers by potential value (CBP, Army Forces Command, Army PEO Aviation, Air Force, and Department of Interior) represent 96% of combined potential value. By award count, CBP and Air Force tie at seven awards each, but CBP dominates the dollar ranking by more than seventy-fold. This concentration reflects Teal Drones' anchoring position on CBP's $90 million Blue Small Unmanned Aircraft Systems multiple-award BPA, awarded December 17, 2021 and extending through December 16, 2026.

Teal Drones holds four principal indefinite delivery vehicles. The $90 million CBP Blue sUAS BPA (multiple award, extending through December 2026) has generated five BPA calls totaling $3.2 million in recent task orders. A $25 million multiple-award Blanket Purchase Agreement with Army Forces Command for Blue List-compliant sUAS and parts (awarded August 15, 2025, extending through August 2030) is the company's second-largest vehicle and anchors Army procurement. A $5.95 million Other Transaction Agreement with Army PEO Aviation for the Short Reconnaissance Tranche 2 project (awarded March 8, 2022) supports intelligence, surveillance, and reconnaissance requirements. A $480 thousand single-award BPA with the Department of Interior for TEAL 2 systems (awarded November 20, 2023) expired April 10, 2025 and is no longer active. The company also holds a seat on the GSA Multiple Award Schedule, which generated 32 task orders valued at $95.1 million — the largest parent vehicle by task-order count and combined value. Recent 2026 additions include a multiple-award Basic Ordering Agreement with Army Contracting Command–Redstone Arsenal (awarded January 28, 2026, extending through January 2031) for drones and drone components under Executive Order 14307 on Unleashing American Drone Dominance.

Activity has grown substantially from three awards in 2022 to twenty in 2025, with four awards already recorded in 2026 as of April. The company's obligated spend across all awards totals $105.6 million against $131.8 million in combined potential value, reflecting an 80% payment rate. Recent subcontract engagements position Teal Drones as a drone-systems provider to larger primes managing command-and-control and systems-integration work. Named subcontract relationships include Science Applications International Corporation (SAIC) on multiple System Software Lifecycle Engineering awards (May and July 2025) for Uncrewed Vehicle Control software integration and Black Widow/WEB system updates supporting Army's National Center for Critical Information Processing and Storage initiative; Booz Allen Hamilton on a Counter Unmanned Aircraft Systems research task (April 7, 2025) providing Teal Black Widow and Flightwave Edge 130 sUAS systems; HII Mission Technologies Corp on technology-integrated services for NSIN (February 2, 2026); and CACI on counter-UAS research and development at Naval Surface Warfare Center Crane (August 28, 2025). Atlantic Diving Supply appears as a repeat prime on three Teal 2 system sub orders (May 2024, October 2024, and February 2025).

The source data spans awards from April 2019 through April 2026, with concentrated activity after 2022. Award concentration in the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing NAICS (34 of 66 awards) and Aircraft Manufacturing NAICS (11 awards) reflects the company's drone manufacturing posture. The Unmanned Aircraft product and service code accounts for 39 of 66 awards, confirming drone systems as the primary capability signal across the portfolio. Teal Drones' total small business set-aside strategy on individual orders contrasts sharply with its full-and-open competitive positioning on larger blanket purchase agreements and the GSA schedule, positioning the company to capture small-dollar tactical orders while anchoring strategic customer relationships through long-term vehicle participation.