Microsoft’s [MSFT] deal to develop a version of the Integrated Visual Augmentation System (IVAS) with design improvements is worth $125 million, with the Army aiming to field the upgraded headsets in fiscal year 2025.

Testing with the “1.2” version of IVAS is slated to begin “in the latter part of 2023,” a spokesperson for the Army’s Program Executive Officer Soldier has also confirmed to

Defense Daily.

The Army conducted its third soldier touchpoint for the Integrated Visual Augmentation System at Ft. Pickett in Virginia. Photo: U.S. Army.

“The Army employs a continual Soldier Centered Design (SCD) methodology that includes numerous and varied kinds of [soldier touchpoints], including technical tests. In respect to IVAS 1.2, the Army is developing a timeline that includes testing in the latter part of 2023,” the spokesperson said on Monday.

Additional details on the IVAS 1.2 timeline follows the Army’s announcement on Jan. 5 it had officially awarded a task order to Microsoft to work on developing an upgraded version of the headset, which it says will include a new form factor and software improvements (Defense Daily, Jan. 5). 

The Army first rolled out its updated plan for IVAS in October, detailing a focus on rolling out a small number of headsets in 2023 while moving forward on developing a “1.2” version of the capability (Defense Daily, Oct. 10).

The updated roll-out plan follows the Army’s decision last year to push back the program’s timeline, to include delaying IOT&E from its original late FY ‘21 start date to allow time for further enhancements to the capability.

The PEO Soldier spokesperson confirmed fielding of IVAS 1.0, which the Army has called the “baseline warfighter capability,” is expected to begin on Sept. 23. 

The Army has also said a “1.1” version of IVAS features an improved low-light sensor to aid maneuver and positive target identification.

In March 2021, the Army awarded Microsoft a deal worth up to $21.9 billion over the next 10 years to move the IVAS augmented reality headset program from rapid prototyping into production (Defense Daily, March 31 2021).

Delivery orders for IVAS 1.2 are expected to be placed in FY ‘24, according to the spokesperson, with an operational test slated for FY ‘25 ahead of fielding the upgraded system. 

The final FY ‘23 defense appropriations bill included a $360 million cut to the Army’s planned buy for IVAS headsets, while also moving $40 million from the night vision devices procurement request to the service’s research and development account for continued work on IVAS 1.2 (Defense Daily, Dec. 21).

“The Army is assessing the impacts of the FY ‘23 IVAS appropriations on the program and will make appropriate adjustments to support Army modernization objectives,” the spokesperson for PEO Soldier told Defense Daily