Raytheon, Nine Others Compete for US Army’s $4.2B Tethered Spy Balloon Deal

Published on April 21, 2025

The US Army has selected 10 defense firms to compete for a $4.2-billion program to develop a next-generation, lighter-than-air surveillance balloon.

Raytheon, QinetiQ, Skyship Services, Advanced Technology Systems, and Thunderbolt have been named among the participants in the 10-year initiative, known as the Persistent Surveillance System – Tethered (PSS-T).

They will be joined by Leidos, Elevated Technologies, Mission Solutions Group, TCOM, and Tyonek Technical Services, each bringing specialized capabilities in aerostat design, integration, and mission support.

The army first issued a solicitation for PSS-T in mid-2024, seeking industry solutions to enhance persistent intelligence, surveillance, and reconnaissance (ISR) capabilities amid evolving geopolitical threats.

A total of 10 bids were submitted for the cost-plus-fixed-fee contract.

Advanced Detection Capability

The PSS-T is envisioned as a long-endurance, multi-sensor surveillance platform capable of delivering 360-degree detection, tracking, and targeting data.

Designed to operate at altitudes up to 15,000 feet (4,572 meters), the system will provide near-continuous coverage in support of joint and multinational operations.

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