The US Department of War (DoW) has entered into two major framework agreements worth more than $3bn with Northrop Grumman and Lockheed Martin, targeting a substantial increase in the production of key missile-interceptor components.
Under the agreements, Northrop Grumman will accelerate manufacturing of the solid rocket motors and related components for the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE), as well as ramp up the output of critical parts for the Terminal High Altitude Area Defence (THAAD) system.
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The PAC-3 MSE solid rocket motor effort, involving a $2bn framework, is aimed at enhancing the nation’s integrated air and missile defence capabilities, the department said.
Separately, Northrop Grumman has secured a $1bn agreement to quadruple production of structural components for THAAD interceptors over seven years.
This expanded scope will include delivery of mid-body shells, muzzle covers, and rail car assemblies, among other parts.
According to the DoW, these steps are intended to triple PAC-3 production and quadruple THAAD output in the coming years, meeting both domestic and allied requirements.
Acquisition and Sustainment, Under Secretary of War Michael P. Duffey said: “Building the Arsenal of Freedom requires robust, dynamic supply chains at every level of the industrial base.
“Framework agreements with munition components suppliers like Northrop Grumman are vital to accelerating the tripling of PAC-3 and quadrupling of THAAD interceptor production.”
The DoW stated that this initiative implements its Acquisition Transformation Strategy, which emphasises direct engagement with suppliers throughout the industrial base.
Instead of working exclusively through prime contractors, the Department is forming strategic agreements with essential component manufacturers.
According to the Department, this method is intended to provide greater stability and predictable demand across the supply chain, supporting investments in tooling, modernised facilities, and workforce growth to increase production capacity.
Production at Northrop Grumman’s Allegany Ballistics Laboratory (ABL) in Rocket Center, West Virginia, will be a key element of the PAC-3 MSE expansion.
The company has already doubled solid rocket motor capacity at ABL since 2021 and aims to triple it further by 2027.
This is expected to enable US Army procurement of PAC-3 MSE missiles to grow from roughly 600 units annually to the low thousands within several years, supporting both U.S. and allied requirements.
These contracts follow additional awards across the sector, including a recent $4.7bn contract given to Lockheed Martin in April to accelerate the delivery of PAC-3 MSE interceptors.
Northrop Grumman has invested significantly in munitions technology and production facilities, according to company information, allocating more than $2bn toward these areas since 2019.
Over $1bn of this investment has focused specifically on enhancing solid rocket motor capacity.
According to the Department of War, these steps collectively support the President and Secretary of War’s objectives to strengthen the “Arsenal of Freedom” and ensure timely delivery of missile defence capabilities to US forces and partners.
