The military branch said Tuesday it wants a turboshaft engine that can generate up to 100 horsepower and use 0.55 pounds of fuel per hour for each horsepower it produces.
Lt. Col. Aaron Tucker said he believes three-dimensional printers and other rapid prototyping machines could help produce such an engine.
The Air Force aims to engage a wider audience to help the service develop mission-critical technologies through programs other than the traditional acquisition initiatives.
The prize money will be awarded to the developer of an engine that passes verification testing at the Air Force Research Laboratory, the military branch said.