Key facts
- The Pentagon has signed seven-year agreements with General Dynamics Ordnance and Tactical Systems and Lockheed Martin to increase missile production.
- These deals aim to boost production quantities and accelerate delivery schedules for THAAD and Patriot PAC-3 MSE interceptor subcomponents.
- The Army awarded Lockheed Martin an additional $53.86 billion for PAC-3 MSE interceptors, bringing the total contract value to $58.62 billion.
- RTX unit Raytheon received a $22.9 billion contract to significantly increase Tomahawk missile output.
- L3Harris has a framework agreement to ramp up solid rocket motor production for PAC-3 missiles and THAAD interceptors.
The U.S. Pentagon has secured seven-year agreements with General Dynamics Ordnance and Tactical Systems and Lockheed Martin to significantly increase the production of critical missile subcomponents for the Terminal High Altitude Area Defense (THAAD) and Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptor programs. These deals are intended to accelerate delivery schedules and build a more resilient supply chain for essential munitions.
In parallel, the Army awarded Lockheed Martin an additional $53.86 billion for PAC-3 MSE interceptors, bringing the total value of its seven-year contract to $58.62 billion. This funding aims to enable Lockheed Martin to triple its PAC-3 MSE production capacity by the end of 2030. The contract vehicle is undefinitized, allowing production to commence while negotiations continue, a measure designed to bypass potential roadblocks in congressional appropriations.
Separately, RTX unit Raytheon received a $22.9 billion contract to dramatically boost the output of Tomahawk missiles, with the goal of increasing annual production from 60 to over 1,000 missiles over seven years. This move addresses concerns about depleted inventories of high-tech weaponry following significant arms supplies to allies and operations in the Middle East.
Furthermore, L3Harris has entered into a framework agreement with the Pentagon to ramp up solid rocket motor production for PAC-3 missiles and THAAD interceptors. This agreement, also spanning seven years, is crucial as solid rocket motors have been a bottleneck in missile production due to a fractured industrial base. L3Harris anticipates nearly tripling production for certain PAC-3 missile products and quadrupling production for THAAD components.