DIU: Specular MIST Prize Challenge
Below is a brief summary. Please check the full solicitation before applying (link in resources section).
Executive Summary:
The DIU Specular MIST Prize Challenge is a Defense Innovation Unit (DIU) prize competition seeking commercial technologies that improve maritime electronic warfare, electronic surveillance, and radar training capabilities for crewed and autonomous Unmanned Surface Vessels (USVs). The challenge is conducted in collaboration with the Department of the Navy Rapid Capabilities Office (DONRCO) and Naval Information Warfare Center Pacific.
The solicitation is focused on accelerating the development, prototyping, and production of modular payloads that can be integrated onto manned and autonomous surface vessels. Companies compete through a three-phase process consisting of a written proposal, an at-sea demonstration, and a potential post-demonstration pathway that may include additional prize funding and eligibility for follow-on prototype or production opportunities.
Applications are accepted under three Lines of Effort (LOEs):
LOE 1 – Threat Radar Simulators
LOE 2 – Active Electronic Attack (EA)
LOE 3 – Passive Electronic Surveillance
The solicitation emphasizes modular open-system architectures, software-defined capabilities, scalability, production readiness, and solutions designed for maritime environments.
The Phase 1 submission deadline is July 22, 2026 at 23:59:59 US/Eastern Time. Companies interested in participating should begin preparing their White Paper and Pitch Deck immediately because selected vendors may be invited to demonstrate their technology less than two months later during the live at-sea event.
How much funding would I receive?
The solicitation states there is a total cash prize pool of $5,000,000, distributed across multiple phases of the challenge.
Funding opportunities include:
Phase 1
Vendors selected to advance from the written proposal evaluation receive up to $250,000 to fund participation in the live demonstration.
Phase 2
Companies selected following the At-Sea Challenge may receive up to $1,000,000 per selected company.
Phase 3
Additional prize funding may be awarded as companies continue supporting operational units and iterative product development. The solicitation does not specify individual Phase 3 award amounts.
What could I use the funding for?
The funding supports development, demonstration, maturation, and potential fielding of technologies that address maritime sensing, electronic warfare, and training challenges.
Projects must align with one of three Lines of Effort.
LOE 1 – Threat Radar Simulators
Develop maritime-compatible radar simulators that:
Emit complex S-band signals
Operate from moving vessels
Operate remotely
Support future integration onto autonomous USVs
Meet the technical specifications outlined in the solicitation.
LOE 2 – Active Electronic Attack
Develop systems capable of:
Autonomous electronic warfare
Detecting multiple RF signals
Adaptive real-time jamming
Operating without operator intervention
Integration onboard autonomous USVs.
LOE 3 – Passive Electronic Surveillance
Develop remotely operated RF surveillance systems capable of:
Monitoring the RF environment
Supporting VHF and UHF bands
Operating with multiple layers of encryption
Hosting government-provided software
Supporting Navy cybersecurity requirements.
Across all applicable LOEs, solutions should address:
Modular open-system architectures
Software-defined capabilities
SWaP optimization
Maritime environmental resilience
Remote command and control
Production scalability
Cost-effective manufacturing.
Are there any additional benefits I would receive?
Beyond prize funding, the solicitation identifies several potential benefits.
These include:
Direct operational engagement with leaders across multiple branches of the U.S. Department of Defense.
Live operational testing with military end users during the At-Sea Challenge.
Eligibility for potential follow-on Prototype Other Transaction (OT) agreements under 10 USC 4022.
Eligibility for prize awards under 10 USC 4025.
Potential system procurement for extended testing.
Opportunity for continued operational feedback and iterative product development during Phase 3.
The solicitation also states that there is no guarantee that follow-on awards or contracts will be awarded.
What is the timeline to apply and when would I receive funding?
Challenge Timeline
July 8, 2026: Challenge opens and solicitation is released.
July 22, 2026 at 23:59:59 US/Eastern Time: Phase 1 submission deadline for the White Paper and Pitch Deck.
July 29, 2026: Companies selected to advance to Phase 2 are announced.
August 5, 2026: Virtual Q&A session for selected Phase 2 participants.
September 10, 2026: At-Sea Challenge live demonstration begins in Southern California.
September 25, 2026: At-Sea Challenge live demonstration concludes.
October 23, 2026: Prize Challenge Board completes deliberations.
October 30, 2026: Prize Challenge winners are announced.
Funding is distributed across the challenge phases.
Phase 1 participants selected to advance receive up to $250,000.
Phase 2 down-selected companies may receive up to $1,000,000.
Phase 3 participants may receive additional prize funding, although specific amounts are not specified.
The solicitation does not specify when individual prize payments will be disbursed after each phase.
Where does this funding come from?
The Specular MIST Prize Challenge is sponsored by the Defense Innovation Unit (DIU) in collaboration with the Department of the Navy Rapid Capabilities Office (DONRCO) and Naval Information Warfare Center Pacific.
The challenge is intended to accelerate the development, prototyping, and fielding of commercial technologies that address maritime training and operational needs for the Department of Defense. According to the solicitation, DIU uses the challenge to identify innovative, scalable, and cost-effective solutions that can be rapidly transitioned into operational use.
The solicitation states that high-performing participants may become eligible for:
Prize awards under 10 USC 4025
Prototype Other Transaction (OT) agreements under 10 USC 4022
Potential system procurement for extended testing
The solicitation also states that there is no guarantee that follow-on awards or contracts will be made.
Who is eligible to apply?
The solicitation is an open call to small businesses and non-traditional defense contractors developing innovative commercial technologies that address one or more of the three Lines of Effort.
Companies may:
Submit separate proposals for LOE 1, LOE 2, and/or LOE 3.
Submit a combined proposal covering LOE 1 and LOE 2.
Submit teaming proposals if multiple organizations are needed to deliver the required capabilities.
For Phase 1, the solicitation states:
An active Facility Clearance (FCL) is not required to submit a proposal.
All Phase 1 work will be conducted in unclassified environments.
Applications must be fully unclassified.
To participate in Phase 2, applicants must meet additional security requirements, including:
Contractor personnel requiring classified access must possess and maintain a final U.S. Government SECRET security clearance or higher. Interim clearances are acceptable for initial performance.
Compliance with applicable SIPRNet or JWICS access requirements.
Compliance with DD Form 254 requirements for classified work.
If classified material will be stored at the contractor's facility, possession of a DCSA-approved classified storage capability at the SECRET level or higher.
Who is not eligible to apply?
The solicitation does not provide a standalone list of ineligible applicants, but it identifies several situations that would prevent participation or make a submission noncompetitive.
Examples include:
Companies proposing solutions that do not address one of the three specified Lines of Effort.
Proprietary solutions that are "walled off" or require extensive integration effort for third-party technologies.
Applicants unable to satisfy the security requirements necessary for Phase 2 participation.
Applications that are not submitted through the official DIU portal before the submission deadline.
Classified submissions, since Phase 1 applications must be fully unclassified.
The solicitation also states that companies with ideas outside the scope of the solicitation should not submit them.
What companies and projects are likely to win?
The solicitation describes the characteristics evaluators will use when selecting companies throughout each phase of the competition.
Competitive projects are expected to demonstrate:
Strong alignment with the technical requirements of the selected Line of Effort.
Technical viability and a clear approach to solving the identified capability gap.
Modular, open-system architectures.
Software-defined capabilities where applicable.
Optimization for Size, Weight, and Power (SWaP).
Ability to operate in maritime environments.
Scalability for production at increasing unit quantities.
Realistic pricing and lifecycle maintenance planning.
Demonstrated production capability and corporate expertise.
Clear operational value for Department of Defense users.
During the live demonstration, evaluators will also consider:
Operational performance under realistic maritime and electromagnetic conditions.
Ease of use by military operators.
Training documentation provided by the company.
Quality of the company presentation and value proposition.
Potential commercial viability outside the defense market.
For Phase 3, evaluators additionally consider:
Ability to rapidly manufacture operational systems.
Positive impact on military tactics, techniques, and procedures (TTPs).
How competitive will this solicitation be?
The solicitation does not specify the number of expected applications or the number of Phase 1 awards.
However, the challenge is structured as a multi-phase competitive down-selection process, with companies advancing through progressively more rigorous evaluations.
Participants compete through:
Phase 1 written proposal evaluation.
Phase 2 live operational demonstration.
Phase 3 operational assessment and user-driven iteration.
Throughout the competition, proposals are evaluated on technical performance, company capability, production scalability, pricing, operational effectiveness, and end-user feedback. Only selected companies advance between phases.
Because the solicitation includes live demonstrations, military operator evaluations, and multiple down-selection stages, applicants should expect a highly competitive process. The solicitation does not specify anticipated success rates or award percentages.
Are there any restrictions I should know about?
The solicitation includes several important requirements and limitations applicants should consider before applying.
Submission requirements
Applications must be fully unclassified.
Proposals must be submitted through the official DIU portal before the submission deadline.
Companies may submit separate proposals for LOE 1, LOE 2, and LOE 3. LOE 1 and LOE 2 may also be combined into a single proposal, while LOE 3 requires a separate submission.
White Paper requirements
Applicants must submit:
A White Paper of no more than 6 pages.
Font size 11 or 12.
1-point line spacing.
1-inch margins.
The White Paper must state the current Technology Readiness Level (TRL), with TRL 6+ preferred for the sensor package, identify the applicable Line of Effort, and include a Rough Order of Magnitude (ROM) for cost and schedule.
Pitch Deck requirements
Applicants must also submit:
A PDF presentation in 16:9 (1920 × 1080) format.
A maximum of 8 slides, plus one additional slide for each Line of Effort included in the proposal.
Technical expectations
For applicable Lines of Effort, solutions should address:
Modular, open-system architectures.
Software-defined capabilities.
Size, Weight, and Power (SWaP) optimization.
Maritime environmental resilience.
Production scalability.
Remote command and control capabilities.
Technical requirements specific to the selected Line of Effort.
Security requirements
While Phase 1 is entirely unclassified, companies advancing to Phase 2 must satisfy the personnel clearance, network access, and classified safeguarding requirements described in the solicitation.
Intellectual Property
Applicants retain ownership of their existing intellectual property. By submitting, applicants grant DIU a limited license to use submitted intellectual property for testing and evaluation related to the challenge. Any additional use, integration, or development would be negotiated separately.
How long will it take me to prepare an application?
The solicitation does not specify how long applicants should expect to spend preparing a submission.
However, applicants must prepare both:
A technical White Paper meeting the solicitation's formatting and content requirements.
A Pitch Deck describing the proposed operational solution.
Applicants should also be prepared to document:
Technical capabilities.
Technology Readiness Level (TRL).
Rough Order of Magnitude (ROM) cost and schedule.
Size, Weight, Power, and Cost (SWaP-C).
Production scalability.
Delivery timelines.
Training plans.
Technical performance and ruggedness.
Relevance to the selected Line of Effort.
Because the Phase 1 submission deadline is July 22, 2026 at 23:59:59 US/Eastern Time, companies should begin preparing their submissions as soon as possible.
How can BW&CO help?
Preparing a competitive submission requires more than simply responding to the solicitation requirements. BW&CO works with technology companies to develop proposals that clearly communicate technical capabilities, commercialization potential, and alignment with Department of Defense priorities.
For the Specular MIST Prize Challenge, BW&CO can help your team:
Determine the most appropriate Line of Effort for your technology.
Develop a compliant White Paper that addresses the evaluation criteria.
Prepare a compelling Pitch Deck for the Phase 1 review.
Clearly communicate your technology's operational value, production readiness, and scalability.
Position your company for potential follow-on opportunities, including Prototype Other Transaction (OT) agreements, if selected.
With the July 22, 2026 at 23:59:59 US/Eastern Time submission deadline, companies should begin preparing application materials immediately.