The agreements will initiate multiyear procurement contracts for missile components and establish faster delivery schedules. They cover specialized hardware supporting both the PAC-3 MSE and THAAD programs.
The procurement structure guarantees minimum annual quantities, giving manufacturers and lower-tier suppliers a clearer long-term demand outlook. Funding will remain subject to annual congressional appropriations.
“Today’s announcement represents an example of the evolution of how we partner with industry to expand the Arsenal of Freedom, outpace emerging threats, and ensure the Warfighter never faces a fair fight,” Under Secretary of War for Acquisition and Sustainment Michael P. Duffey said. “General Dynamics and Lockheed Martin have answered the call.”
“We are cutting red tape, shortening timelines, and rapidly scaling our domestic manufacturing capacity to deliver the advanced air and missile defense capabilities,” Duffey added. The department said the agreements are intended to accelerate manufacturing expansion across the domestic missile supply chain.
General Dynamics will lead the rapid increase in output of highly specialized interceptor components. The planned expansion includes motor cases, seeker housings and midsections, and shroud deployment systems.
Guaranteed procurement levels will allow General Dynamics and its suppliers to plan investments across a seven-year period. Those investments may include workforce expansion, bulk purchases of materials and upgrades to production facilities.
The agreements mark a shift toward longer-term procurement commitments for components supporting the PAC-3 MSE and THAAD programs. The approach is intended to increase industrial capacity while shortening delivery timelines for advanced U.S. air and missile defense systems.
