Earlier this month, the Federal Aviation Administration (FAA) launched an innovative first of its kind pilot program to accelerate the deployment of advanced air mobility (AAM) vehicles, which the FAA states have the potential to “transform aviation” by, among other things, reducing road congestion, enhancing emergency or medical transport, and expanding connectivity in rural areas.

The pilot program, known as the Electrical Vertical Takeoff and Landing (eVTOL) Integration Pilot Program (eIPP), will form public-private partnerships with state and local government entities and private sector companies. The FAA envisions eIPP operations will include both piloted and unmanned approaches to:

1. Passenger Operations: Short-range air taxis with potential connections to other methods of transport, as well as the development of longer-range, fixed-wing flights for regional transportation.
2. Cargo and Logistics: Demonstrating new airlift capabilities to ensure efficient transport of cargo on short-range and regional operations.
3. Unique Environments: Addressing scenarios not previously considered for eVTOL operations, such as emergency medical transport or offshore energy support.

Broadly, the eIPP aims to kickstart and accelerate exploration of eVTOLs and other AAM technologies in the interest of the public with a focus on creative solutions, automation, and efficiency. The FAA also discusses that projects from the eIPP will further inform federal regulations in this area.

In advancing the eIPP, the FAA published a screening information request (SIR) seeking proposals from state, local, and tribal governments, which will then partner with U.S.-based private entities with demonstrated experience in the eVTOL or AAM space. The FAA will ultimately select up to five proposals for issuance of Other Transaction Agreements (OTAs), which represent a streamlined method of contracting with the Federal Government that leaves the door open for federal funding opportunities. This type of procurement represents another instance of the Government leaning into more creative contracting arrangements to encourage greater commercial participation in public contracting.

Key Dates & Points to Note

• Although there is currently no federal funding tied to the eIPP, the FAA makes clear that such funding may become available and then could be appropriated to final OTAs entered into between the FAA and the proposers. In effect, award of an OTA may amount to preapproval for such funding on this priority point for the Administration and offer parties a chance to directly interface with the FAA as it considers new regulations.
• Proposals are due on December 11, 2025, but interested parties must submit questions by October 7, 2025. In many procurements, questions submitted become a critical point for clarifying the evaluation process, and therefore, any party that may partner with a government bidder should submit all questions by the deadline.
• The FAA will evaluate proposals based on a number of stated criteria, including a pass/fail metric for having a documented partnership between the government bidder and a private sector party and other evaluation items relating to the readiness of the project and its ability to offer insight to the FAA on policy or regulatory matters.
• Projects must include an AAM aircraft developed by a U.S. entity and must be undergoing type certification with the FAA.
• The eIPP follows the Administration’s June 6, 2025, Executive Order 14307, Unleashing American Drone Dominance, which required the FAA to establish a pilot program to accelerate the deployment of safe and lawful eVTOL operations. The Executive Order offers further insight into the qualifying criteria and the number of applicants the FAA may be expected to select.
• The eIPP is also part of the Administration’s larger mission to support the integration of AAM operations in the United States, and coincides with prior congressional pressure and FAA rulemaking to safely expedite the integration of these aircraft in the national airspace system.

Next Steps

Cozen O’Connor’s Aviation and Government Contracts teams are working closely to monitor ongoing developments in this area and potential avenues for involvement by commercial entities. Our teams are available to assist clients throughout any aspect of this procurement process as well as providing insight on the regulatory environment for eVTOLs and AAM from the FAA.