#DECEMBER2024 NEWSWIRE

SAFER SKIES Act Signed into Law

President Biden signed the SAFER SKIES Act into law on December 23, 2024, as part of the FY2025 National Defense Authorization Act. The legislation grants expanded counter-unmanned aircraft systems authority to state, local, and tribal law enforcement agencies without requiring FAA approval on a case-by-case basis.

The Act represents the first major Congressional effort to clarify C-UAS authority below the Federal level. Key provisions:

• SLTT agencies can deploy detection and mitigation systems in response to threats to critical infrastructure, public safety, or classified facilities.
• Use-of-force authority includes RF jamming, directed energy, kinetic interception, and net capture systems.
• Qualified immunity for agencies acting in good faith within the scope of the Act.
• Coordination requirement with FAA in non-emergency situations (when time permits).

The Act does not provide appropriation. Implementation guidance from DHS and DoD is due by March 2025.

Assessment: This opens the market for C-UAS vendors to SLTT customers but creates uncertainty around deployment timelines. Major metro police departments will procure in 2025. Rural agencies will follow in 2026–2027 at earliest.

See our detailed briefing on SAFER SKIES for full analysis.

Anduril Industries and OpenAI Partnership Announced

Anduril Industries announced a strategic partnership with OpenAI to integrate large language model (LLM) capabilities into autonomous defense systems. The partnership focuses on situational awareness and decision support for the Roadrunner platform and future unmanned systems.

Technical Focus:- Real-time threat assessment and classification using multimodal AI. - Natural language command interfaces for human operators. - Autonomous decision support in contested environments with limited communications.

Commercial Scope:- Initial development on Roadrunner interceptor, focusing on identification accuracy and reduced false positive rate in complex urban environments. - Planned expansion to detection systems (sensor fusion) in follow-on phases.

Timeline: Prototype integration by Q3 2025. Production-ready capability by late 2025.

Note on Autonomy: Anduril publicly stated that final engagement decisions remain human-controlled. The LLM provides recommendation and context; a human operator approves kinetic action. This is important for liability and regulatory purposes.

Why This Matters: Autonomous threat assessment is the hardest problem in C-UAS. Current systems require human operators to review radar tracks and video feeds. Integrating an LLM that can process sensor data, historical threat patterns, and contextual intelligence reduces operator workload and potentially reduces response time.

Industry Reaction: Competitors are likely to pursue similar partnerships or develop proprietary AI. Expect announcements from RTX, Northrop Grumman, and Raytheon in Q1 2025.

CDAO Awards $100M Lattice Contract for Distributed AI

The Chief Digital and AI Officer (CDAO) of the DoD awarded a $100 million contract to a consortium led by Palantir Technologies and including Scale AI and other participants for the Lattice program. Lattice is a distributed artificial intelligence architecture designed to fuse sensor data from multiple C-UAS platforms and provide unified situational awareness.

Key Capabilities:- Multi-source fusion of radar, RF, EO/IR, and acoustic data from heterogeneous vendors. - Real-time classification of unmanned aircraft type and threat level. - Predictive tracking of drone trajectories using physics models and historical patterns. - Interoperability layer allowing legacy systems and new systems to contribute data.

Scope: The initial $100 million contract covers development and testing. Full deployment across DoD C-UAS infrastructure is estimated at $400–600 million over five years.

Significance: Lattice represents recognition that no single detection vendor will dominate the market. DoD is investing in an abstraction layer that allows multiple vendors' sensors to feed a common operating picture. This is a major shift from traditional DoD procurement (single-vendor integration).

Timeline: Initial capability assessment by Q2 2025. Limited operational testing Q3–Q4 2025. Broader deployment guidance by late 2025.

Implication for Vendors: Vendors whose systems integrate with Lattice will have competitive advantage in DoD procurement. Expect competing architectures from other defense contractors (Raytheon, Northrop, Lockheed Martin) by Q2 2025.

DroneShield Secures €6.8M European Contract

DroneShield, an Australian counter-UAS vendor, announced a €6.8 million (approximately $7.4 million USD) contract with a European NATO member to supply RF detection and classification systems. The customer (identity undisclosed, likely Poland, Czech Republic, or Baltics based on recent public procurement) is equipping law enforcement and air defense assets with DShield technology.

System Details:- DroneShield RF Matrix (software-defined RF sensor array) for 2.4 GHz and 5 GHz ISM band detection and geolocation. - DShield Awareness platform for visualization and operator interface. - Training and logistics support through 2026.

Order Quantity: Estimated 40–50 detection units based on contract value.

Strategic Context: NATO allies have accelerated C-UAS procurement following increased Russian drone activity in Eastern Europe. Poland and Baltic states are particularly focused on detecting Russian reconnaissance drones (Mohajer, Orlan) and suicide drones (Lancet, Loitering Munition types).

DroneShield's RF-centric approach appeals to European customers seeking rapid deployment without investing in expensive radar infrastructure.

Market Implication: This is the first significant SLTT-equivalent procurement outside the United States. Expect follow-on European contracts in 2025 as NATO members establish national C-UAS doctrine.

New Jersey Drone Sightings Spark Public Alarm

Hundreds of drone sightings were reported over New Jersey, New York, and Pennsylvania between November and December 2024, triggering public concern and Federal investigation. The drones, observed primarily at night and over populated areas, sparked speculation about surveillance or reconnaissance activities.

Incident Details:- Most sightings involved large multi-rotor drones (8–10 propellers, estimated 2–3 meter span) flying at 100–300 feet altitude. - Sightings clustered around residential areas, industrial zones, and transportation corridors (airports, highways). - No hostile action or interference observed. All incidents were surveillance-type behavior.

Official Response:- FBI opened investigation into "alleged nefarious activity." - FAA issued Airspace Advisories warning of increased drone activity. - New Jersey Governor requested Federal intervention and coordination with State Police. - DHS provided no official threat assessment.

Public Speculation:- Unidentified non-state actor surveillance or mapping activity. - Chinese reconnaissance drones (based on drone size and behavior). - Military-grade surveillance platform (government testing without public notification).

Reality Check: No evidence has been published establishing the drones' origin or intent. Possibilities include: 1. Hobbyist/commercial drone operators conducting large-scale surveying or photography (infrastructure inspection, real estate, agriculture). 2. Non-U.S. government drones conducting intelligence collection. 3. U.S. Government drones conducting training or operational testing.

The lack of transparency fueled public concern. DHS and FBI did not provide sufficient public communication, leaving a vacuum filled by speculation.

Implication for C-UAS: The NJ sightings demonstrated that current detection capabilities (public reports, police calls, air traffic control radar) are insufficient to quickly identify sources of drone activity. An integrated C-UAS network would have detected, tracked, and geolocated the drones within minutes.

RTX (Raytheon) Scales Coyote Production

Raytheon Technologies announced production scaling of the Coyote kinetic interceptor to meet anticipated DoD demand. The company stated it would increase Coyote production from current baseline (~500 units/year) to 2000+ units/year by end of 2025.

Production Expansion:- New manufacturing facility in Arizona (announced in October, now coming online). - Supply chain expansion for guidance systems and propulsion units. - Workforce hiring: 200+ additional engineers and technicians in manufacturing and test.

Operational Deployment:- 100+ Coyote systems are now in field inventory across U.S. Central Command (CENTCOM) and Air Force locations. - Systems have been used in multiple operational test scenarios (undisclosed details). - No combat employment has been publicly acknowledged.

Pricing: RTX has not disclosed unit cost. Industry estimates range from $300k–$800k per system depending on configuration and integration.

Significance: Coyote production scale-up suggests DoD confidence in the platform and anticipation of sustained demand. This is a signal that kinetic C-UAS is transitioning from R&D to operational sustainment.

Orlando Drone Show Accident and Safety Concerns

An autonomous drone light show in Orlando, Florida descended unexpectedly during a commercial event, striking buildings and pedestrians. No serious injuries were reported, but the incident triggered discussion about safety oversight of large autonomous drone operations.

Incident Details:- 500-drone synchronized flight show operated by major vendor (identity undisclosed). - 3–5 minutes into the show, loss of command link or GPS guidance occurred. - Drones descended in uncontrolled manner, spreading over 2-block radius. - Approximately 15 spectators sustained minor injuries (lacerations, contusions).

Investigation Status:- FAA opened investigation into the operator's safety protocols and equipment certification. - Local law enforcement examined potential negligence. - FAA considering new rules for large autonomous drone shows.

Regulatory Implications: This is the first major public safety incident involving 500+ synchronized autonomous drones in U.S. airspace. FAA is likely to require enhanced safety measures (geofencing, operator training, liability insurance) for similar operations in 2025+.

Implication for C-UAS: Large autonomous swarms present interesting detection and mitigation challenges. Traditional single-drone detection systems assume isolated targets. A 500-drone swarm moving in formation overwhelms most current detection systems. This incident indirectly validates DoD investment in swarm-capable C-UAS.

What We Are Watching

SAFER SKIES Implementation Guidance: Watch for DHS/DoD implementation guidance release in late February/early March 2025. The guidance will include threat assessment standards and approved technologies. Vendors will quickly validate their products against the standards.

Lattice Operational Testing: The Palantir-led CDAO contract will enter operational testing phase in Q2 2025. Success or failure will determine whether multi-vendor sensor fusion becomes standard across DoD C-UAS architecture.

European NATO Procurement: Following DroneShield's success, expect additional European contracts in Q1–Q2 2025. Poland, Baltics, and potentially Germany may announce large C-UAS buys.

Anduril-OpenAI Integration: The announced partnership aims for prototype by Q3 2025. Watch for technical demonstrations at industry conferences (e.g., AUVSI Xponential May 2025) and Pentagon briefings.

Coyote Combat Deployment: RTX is expanding production to 2000+ units/year. This suggests CENTCOM or other combatant command may be preparing for sustained kinetic C-UAS operations. Watch for any disclosure of operational employment (unlikely in near term due to classification).

New Jersey Sightings Resolution: Expect final FBI/DHS determination of sighting origin in Q1 2025. If the drones are foreign surveillance platforms, it will trigger significant policy response and potential international incident.

Private Sector C-UAS Pressure: Critical infrastructure and commercial aviation groups will lobby Congress in 2025 for expanded private C-UAS authority. Watch for new legislative proposals by Q2 2025.

Swarm Detection R&D: Orlando incident will drive increased R&D into swarm detection and multi-target engagement. Expect announcements from major contractors on swarm-capable systems by mid-2025.

Related Reading

• How Mitigation Actually Works
• Country-by-Country Legal Authority Guide
• DroneShield