
If you need any more confirmation that drones are destined to become a part of everyday civilian life, here it is. NASA has announced the selection of Dayton, Ohio based Development Projects Inc. to manage a new Centennial Challenge prize competition involving unmanned aircraft systems in 2014.
The purpose of the contest, known as the Unmanned Aircraft Systems Airspace Operations Challenge (UAS AOC), is to help civilian drones avoid aircraft. Before unpiloted or remotely piloted aircraft can safely operate in the same airspace as other, piloted aircraft, robotic aircraft and their operators will need to demonstrate a high level of operational robustness and the ability to “sense and avoid” other air traffic. The Unmanned Aircraft Systems Airspace Operations Challenge (UAS AOC) is focused on developing some of the key technologies that will make UAS integration into the National Airspace System possible.
The contest will offer prizes totaling $500,000. While Phase I doesn’t begin until Spring, 2014, it’s not too early for serious developers to start their initial research. (We note that interpretation and usage of ADS-B data will play a critical role for participants in Phase I.)
You can read the draft of the competition rules and more in a 16 page PDF available from NASA.

This guy is working on a hobbyist cost targeted (US$200-300) Sense And Avoid system for RC FPV aircraft:
http://www.rcmodelreviews.com/forum/viewtopic.php?f=51&t=1994
He’s still working on it as recently mentioned on his RC Model Reviews YouTube channel.