Ryan pursued advanced drone concepts on a part-time basis. After discussions with the CIA that went nowhere, Ryan pitched their advanced reconnaissance drone concepts to the Air Force in early 1966. The USAF was interested, and opened up a design competition, with Ryan competing with North American Aviation. Ryan won the competition in June 1966, and the new design was designated the "Model 154 / AQM-91A Firefly". The basic design concept resembled that of the Model 136 Red Wagon drone that Ryan had proposed earlier in the decade, but which had been turned down in favor of a modified Firebees. The name "Firefly" was resurrected from the early Model 147 program for the new drone, though it was also referred to as "Compass Arrow" after the program name.