The Ministry of Defence (MOD) has confirmed a significant investment in tactical communications by awarding a contract worth up to £86 million to BlackTree Technologies, a UK-based small and medium-sized enterprise (SME).
This agreement focuses on the procurement and delivery of the Dismounted Data System (DDS), a comprehensive suite of AI-capable hardware designed to enhance decision-making and situational awareness for frontline personnel. The contract comprises an initial £46 million commitment with options for a further £40 million, reflecting the government’s broader strategic goal to modernise tactical networks and double the British Army’s lethality by 2027.
The DDS includes advanced radios, headsets, display tablets, and associated sensor components, all integrated into a unified network. This system is engineered to rapidly transmit reconnaissance and intelligence data, providing soldiers with precise information regarding their surroundings and reducing the risk of friendly fire incidents. By allowing for the customisation of voice and visual data streams, the equipment ensures that commanders can receive high-fidelity information across diverse battlefield scenarios. The technology has already undergone operational validation during deployments in Estonia, where its visual data elements proved particularly effective in maintaining situational awareness within high-noise environments on NATO’s eastern flank.
For businesses and sub-contractors within the UK defence supply chain, this contract highlights the MOD’s increasing emphasis on domestic SME engagement and sovereign capability. The project is expected to create 12 specialist defence industry jobs across Tewkesbury, Hereford, and Birmingham. Furthermore, the delivery schedule is structured in multiple tranches, with the first units expected to reach the British Army in September 2026 and the full rollout scheduled for completion in 2027. This timeline aligns with the government’s commitment to increase defence spending to 2.6% of GDP by 2027, providing a stable procurement pipeline for domestic innovators.
The award to BlackTree Technologies follows the establishment of the Defence Office for Small Business Growth in January, which is part of a wider policy to increase annual MOD spending with SMEs to £7.5 billion by May 2028. This represents an additional £2.5 billion investment targeted specifically at smaller firms capable of delivering agile, cutting-edge solutions. As the UK shifts toward a posture of warfighting readiness, these procurement strategies are intended to transform the defence sector into a primary engine for national economic growth. Suppliers in the tactical systems and AI domains should view this contract as a benchmark for the MOD’s future requirements in integrated, sensor-driven battlefield technology.
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Post written by: Vicky Maggiani
Vicky has worked in media for over 25 years and has a wealth of experience in editing and creating copy for a variety of sectors.
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