The U.S. Department of War, in collaboration with Northrop Grumman and Lockheed Martin, announced two framework agreements today to significantly expand the production capacity of critical missile-interceptor components. These agreements are designed to ensure long-term demand signals reach key suppliers, enabling the production of Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD) components to triple and quadruple, respectively. This initiative supports President Trump's and Secretary Hegseth's vision to build the "Arsenal of Freedom" and enhance the Nation's integrated air and missile defense.
Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment, emphasized the importance of these agreements. "Building the Arsenal of Freedom requires robust, dynamic supply chains at every level of the industrial base," Duffey said. He added that "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 effort is a direct application of the Department's Acquisition Transformation Strategy, which focuses on engaging directly with key suppliers across the industrial base. By establishing strategic agreements with critical suppliers, the Department aims to provide the stability and long-term demand signals necessary for investments in advanced tooling, facility modernization, and workforce development to scale production effectively.
Under these agreements, the Department of War will establish a second source for Solid Rocket Motors (SRMs) for the PAC-3 Missile Segment Enhancement (MSE) and ramp up production of ignition safety devices. For THAAD Component Production, the agreement will quadruple the output of interceptor structural components, including mid-body shells, muzzle covers, and rail car assemblies, thereby creating a more resilient industrial base.