Vultee had submitted a proposal in response to a U.S. Army Air Corps request for an unusual configuration. The Vultee design won the competition, beating the Curtiss XP-55 Ascender and the Northrop XP-56 Black Bullet. Vultee designated it Model 84, a descendant of their earlier Model 78. After completing preliminary engineering and wind tunnel tests, a contract for a prototype was awarded on 8 January 1941. A second prototype was ordered on 17 March 1942. Although it appeared to be a radical design, its actual performance was lackluster and the project was subsequently canceled.The XP-54 was designed with a pusher engine in the aft part of the fuselage. The tail was mounted rearward between two mid-wing booms, with the 12-ft propeller between them. The design included a "ducted wing section" developed by the NACA that enabled installation of cooling radiators and intercoolers in the inverted gull wing.