USAF Boosts ULTRA Drone Contract Amid Reaper Losses in Iran Conflict, Signaling Shift to Attritable ISR Platforms

The U.S. Air Force has more than doubled a contract with DZYNE Technologies (now part of Ondas) for operational assessment of its ULTRA long-endurance surveillance drone, increasing the total value to $85.6 million. This move comes as the service grapples with significant MQ-9 Reaper attrition during operations against Iran and Houthi forces.

According to Department of Defense announcements and contract trackers, the $46.1 million modification to contract FA8691-26-C-B007 funds continued testing of the Uncrewed Long-Endurance Tactical Reconnaissance Aircraft through 2031, with work at U.S. and overseas sites. The platform, derived from a commercial glider airframe, offers over 70 hours of endurance, payloads exceeding 450 lbs, and operations above 25,000 feet at a fraction of traditional Group 5 UAS costs.

Multiple reports confirm heavy Reaper losses—roughly 25% of the fleet, or at least 45 aircraft—during 2025-2026 campaigns including Operation Epic Fury. These attritions, from air defenses and ground strikes, have prompted exploration of lower-cost complements or replacements. At the Air & Space Forces Association conference, Air Force Secretary Troy Meink highlighted ULTRA's operational use alongside Reapers and outlined plans for a family of Mass Modular Aircraft (MMAs), targeting 100 units by 2029 and 500 by 2032 for affordable, attritable strike and ISR roles.

Ondas's $876 million acquisition of DZYNE positions the combined entity to scale these systems, potentially easing supply pressures on high-value platforms amid geopolitical tensions. This reflects broader patterns where conflicts accelerate diversification of unmanned fleets, influencing defense budgets, industrial production, and long-term force structure—effects that ripple into taxpayer costs and technology development timelines.

Geopolitical flare-ups like the Iran-related operations demonstrate how sustained drone losses can drive rapid procurement shifts, indirectly affecting global supply chains for avionics, sensors, and composites as demand surges for resilient, cost-effective alternatives.