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The U.S. Navy and Marine Corps have chosen Insitu’s 135-pound Integrator unmanned aircraft as their next small tactical reconnaissance plane, ending an industry competition that had lasted almost a year longer than originally planned.

The development contract is valued at $43.7 million but could have greater long-term value for Insitu, the 700-person company based in Bingen, Wash., that once manufactured remote-controlled aircraft as tuna scouts for commercial fishing fleets.

Insitu field representatives currently fly camera-equipped ScanEagle planes in Afghanistan for the Marine Corps and from ships for the Navy. If military assessments of the first planes go well, ...

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