This paper introduces a methodology for the design, testing and assessment of incipient failure detection techniques for failing components/systems of an autonomous vehicle masked or hidden by feedback control loops. It is recognized that the optimum operation of critical assets (aircraft, autonomous systems, etc.) may be compromised by feedback control loops by masking severe fault modes while compensating for typical disturbances. Detrimental consequences of such occurrences include the inability to detect expeditiously and accurately incipient failures, loss of control and inefficient operation of assets in the form of fuel overconsumption and adverse environmental impact. We pursue a systems engineering process to design, construct and test an autonomous hovercraft instrumented appropriately for improved autonomy. Hidden fault modes are detected with performance guarantees by invoking a Bayesian estimation approach called particle filtering. Simulation and experimental studies are employed to demonstrate the efficacy of the proposed methods
