OUSD R&E’s APFIT Program Boosts Small Business
Innovation with Record Funding Level
NEWS RELEASE: June 17, 2025
ARLINGTON, VA – The Office of the Under Secretary of Defense for Research and Engineering’s Accelerate the Procurement and Fielding of Innovative Technologies (APFIT) program broke its funding record for small businesses in fiscal year 2025 with a four-fold increase in investments into projects that will accelerate technologies to warfighters.
APFIT identified five companies to receive between $30 million and $42 million, the largest single awards since the program launched in 2022. Most previous contracts have ranged between $10 million and $20 million.
“The APFIT program is developing into a key initiative to reform the acquisition process and modernize defense technology,” said Emil Michael, Under Secretary of Defense for Research and Engineering. “By increasing APFIT funding, Congress is creating more paths for innovation through small-and-non-traditional companies dispersed around the country.”
Launched in 2022 with $100 million, the APFIT program has grown exponentially to $400 million. First created as a pilot program, Congress established APFIT as a program of record in the FY 2025 budget. This status enables the rapid development and delivery of cutting-edge technologies for the warfighter through resource-constrained companies that may not be able to move from development to production. To date, APFIT investments have surpassed more than $925 million.
“APFIT empowers small-and-non-traditional companies to play a pivotal role in countering emerging threats,” Michael said. “The investments allow them to scale, hire talent, and deliver solutions that directly enhance warfighter capabilities.”
The following projects have received FY2025 APFIT funding
- Electronic Warfare Capability, $42 million, U.S. Army
- Ku/Ka Communications Suite, $33.33 million, U.S. Air Force
- Expeditionary Manufacturing Cells, $30 million, U.S. Air Force
- Low-cost Uncrewed Combat Attack Systems, $30 million, U.S. Marine Corps
- Small Unmanned Aircraft Defense (SUADS), $30 million, U.S. Air Force
- Vanilla Long Endurance UAS, $30 million, Multiple Components
- Palomino Spacecraft Propulsion System, $20 million, U.S. Space Force
- Software-defined Tactical Optical Modem for Performance and Ruggedization (STOMPeR), $18 million, U.S. Marine Corps
- Advanced Solar Modules for Satellites, $18 million, U.S. Space Force
- Advanced Datalink Modernization, $17 million, U.S. Navy
- Strategic Information Transmitted over High Frequency Kit, $16.80 million, U.S. Marine Corps
- Tactical Electronic Warfare Kits, $16 million, Multiple Components
- Signals Intelligence Modernization for Joint Threat Warning Systems, $15 million, U.S. Special Operations Command
- Littoral Explosive Ordinance and Neutralization (LEON) Amphibious Unmanned Ground Vehicles, $14.92 million, U.S. Marine Corps Special Operations Forces
- Connected Sensor Systems, $13 million, U.S. Special Operations Command
- Athena - Counter Unmanned Aerial System (C-UAS) Fused Air Picture, $12.50 million, U.S. Air Force
- Advanced Tactical Flotation Systems, $10.39 million, U.S. Special Operations Command
- Advanced Hypoxia and Dynamic Breathing Threat Training Systems, $10.25 million, U.S. Marine Corps / U.S. Navy
APFIT awards procurement funds for innovative technologies annually and is accepting proposals now. Proposals must be submitted by a government representative or sponsor. Information about APFIT and the submission process is available at the APFIT webpage.
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