Microsoft Bags $22B US Army HoloLens Deal
April 1, 2021
The United States Army awarded Microsoft Corporation a fixed price production agreement to manufacture the Integrated Visual Augmentation System (IVAS).
The contract is worth up to $21.88 billion over 10 years.
This award transitions IVAS to
production and rapid fielding to
deliver next-generation night vision
and situational awareness
capabilities to the Close Combat
Force (CCF) at the speed of
relevance. The unique and innovative
partnership between the Army and
Microsoft accelerated prototype
system development through the
Soldier Centered Design approach to
deliver an unprecedented system to
The IVAS aggregates multiple technologies into an architecture that allows the Soldier to Fight, Rehearse, and Train using a single platform. The suite of capabilities leverages existing high-resolution night, thermal, and Soldier-borne sensors integrated into a unified Heads Up Display to provide the improved situational awareness, target engagement, and informed decision-making necessary to achieve overmatch against current and future adversaries. The system also leverages augmented reality and machine learning to enable a life-like mixed reality training environment so the CCF can rehearse before engaging any adversaries.
The Army’s partnership with Microsoft redefined the timeline for rapid development and production of a major defense program by taking advantage of the Middle Tier of Acquisition and Other Transaction authorities, and partnering with a non-traditional defense contractor that is an industry leader in developing innovative technology.
The partnership between the Army and Microsoft illustrates areas that the Department of Defense and industry can work together towards achieving modernization priorities in the interest of national security.