Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), Red Cat Holdings, Inc. (NASDAQ:RCAT) and 23 other drone manufacturers are preparing for battle at Fort Benning. 

The objective: Secure a lead position in the War Department's Drone Dominance Program, a massive acquisition initiative valued at $1.1 billion over four phases. 

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A New Acquisition Philosophy

The Drone Dominance Program (DDP) is the brainchild of Secretary of War Pete Hegseth, who has spent the last year dismantling traditional procurement hurdles to better match technology with modern battlefield threats.

In his July 2025 memorandum, "Unleashing U.S. Military Drone Dominance," Hegseth redefined the stakes. 

“Drone dominance is a process race as much as a technological race,” Hegseth stated. 

He further emphasized the administration’s aggressive posture, stating, “We are buying what works—fast, at scale, and without bureaucratic delay. Lethality will not be hindered by self imposed restrictions.”

This strategy aims to bolster what officials call “America's Arsenal of Freedom” by prioritizing the rapid fielding of low-cost, unmanned one-way attack drones.

The Gauntlet: Trial by Fire

The first true test begins on Feb. 18 with a Phase 1 evaluation event known as the “Gauntlet I.” 

At Fort Benning, military operators will take direct control of vendor systems—including those from Kratos SRE and Red Cat's subsidiary, Teal Drones—putting the warfighters at the heart of the selection process.

Following the conclusion of the Gauntlet I in early March, the DoW will issue approximately $150 million in prototype delivery orders. 

The selected drones are then expected to hit the front lines within five months, marking a radical departure from past multi-year development cycles. 

The Path to 2027

As the DDP progresses through its four phases, the War Department expects unit prices to drop while production volumes soar. 

The military-grade drone industry is preparing to gather at Fort Benning and the message from the War Department is clear: 

“The funding is ready and steady. The timeline to build combat power is compressed. The competition begins now.”

Photo: Pavlow from Shutterstock