Department of War Signs Framework Agreements With Northrop Grumman to Ramp Production of PAC-3, THAAD Components

Aug. 3, 2026 |

The Department of War, in cooperation with Northrop Grumman and Lockheed Martin, today announced two framework agreements to expand production capacity of critical missile-interceptor components. These historic agreements are critical to ensuring long-term demand signals flow to key suppliers, allowing Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD) production to triple and quadruple, respectively. This effort to stabilize supply chains for our most important interceptors advances President Trump's and Secretary Hegseth's joint vision to build the Arsenal of Freedom, accelerate delivery of critical capabilities, and reinforce the Nation's integrated air and missile defense.

"Building the Arsenal of Freedom requires robust, dynamic supply chains at every level of the industrial base," said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment. "Framework agreements with munition components suppliers like Northrop Grumman are vital to accelerating the tripling of PAC-3 and quadrupling of THAAD interceptor production."

This initiative is a direct application of the Department's Acquisition Transformation Strategy, which prioritizes engaging directly with key suppliers at all levels of the industrial base. Rather than relying solely on prime contractors, the Department is establishing strategic agreements with critical suppliers. This approach ensures the entire supply chain has the stability and long-term demand signals necessary to invest in advanced tooling, facility modernization, and workforce development to scale production.

Under these landmark agreements, the Department of War is driving significant capacity increases across two critical defense programs. First, for the PAC-3 Missile Segment Enhancement (MSE), this framework agreement establishes a second source for Solid Rocket Motors (SRMs). By providing a steady demand signal for a second source, the Department of War is driving stability and competition into the supply chain, creating a more resilient industrial base. Additionally, the agreement ramps up production of ignition safety devices for PAC-3. Second, for THAAD Component Production, this framework agreement will quadruple the production of THAAD interceptor structural components. This includes critical parts such as mid-body shells, muzzle covers and rail car assemblies.

This initiative demonstrates the Department's revitalized Acquisition Transformation Strategy, executed in collaboration with the Munitions Acceleration Council, the Economic Defense Unit, the Missile Defense Agency, and the Office of the Under Secretary of War for Acquisition and Sustainment.

Department of War Announces Landmark Agreements With New Entrants to Accelerate Low-Cost, Air-Launched Cruise Missiles

July 15, 2026 |

The Department of War (DoW) today announced framework agreements with three industry partners to complete testing and qualification of the Family of Affordable Mass Missiles (FAMM) Air Force program. Through agreements with Anduril, CoAspire, and Zone 5, the DoW will accelerate rapid validation of a new family of low-cost, air-launched cruise missiles – capabilities that will strengthen the Arsenal of Freedom.

The agreements are a direct outcome of several Acquisition Transformation Strategy initiatives, including stabilizing demand signals, procuring industry-driven solutions, and maximizing flexible contracting.

"The Arsenal of Freedom of the 21st Century requires doing business differently," said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment. "Today's announcement showcases the Acquisition Transformation Strategy in action, expanding the defense industrial base, fielding capabilities faster, and attracting private investment to fund innovation and increase manufacturing output."

A key feature of these deals is the establishment of seven-year, multi-year agreements which, subject to congressional appropriations and enactment of all necessary authorizations, will be awarded upon the successful validation and competitive selection of the munitions. The Department was granted 5-year authorization for FAMM in the Fiscal Year 2026 National Defense Authorization Act (NDAA) and is actively seeking congressional approval in the FY27 NDAA and Appropriations Bill for a 7-year multi-year procurement program to provide stability to new entrants.

Offering both lugged and palletized variants, the FAMM provides the Air Force with flexible logistics, handling, and deployment options. These variants will be acquired under a single, combined competition.

The Department's procurement strategy for FAMM is a unique model balancing competition, stability and long-term demand signals to scale production.

The multi-year approach utilizes firm-fixed-price contracting with a minimum quantity floor. Shares are split among all qualified vendors to ensure multiple production lines are positioned to surge.

Contractors that meet or exceed production schedules will be eligible for additional procurement quantities – pending congressional appropriations – fostering a competitive environment that rewards efficiency and speed. The Department will also preserve competition opportunities for new vendors to be onboarded for additional quantities and new capabilities in the future as technology continues to advance.

The FAMM program centers acquisition on speed, with the program first appearing in the Air Force's FY26 budget proposal. The DoW leverages new ways of doing business to rapidly accelerate the development and fielding of capability through a focus on testing and delivering stable, long-term demand signals to incentive investment.

FAMM builds on the Department's recent Low-Cost Containerized Missiles (LCCM) announcement, which is the ground-launched variant of affordable cruise missiles. Together, these programs will deliver lethal, low-cost munitions for warfighters to deter and defeat adversaries.

This initiative is a collaborative effort involving the Department of War's Munitions Acceleration Council, the Economic Defense Unit, and the Air Force, all focused on a singular goal of scaling weapons production to meet operational demands and ensure long-term industrial capacity.