Department of War partners with new entrants to boost lethal strike capability

The Department of War has finalized framework agreements with Anduril, CoAspire, Leidos, and Zone 5 to launch a Low-Cost Containerized Missiles program, alongside a separate pact with Castelion to scale low-cost hypersonic systems. The initiatives aim to rapidly expand the U.S. military’s strike capacity and accelerate fielding of affordable munitions in line with directives from President Trump and Secretary Hegseth.

Under the LCCM effort, the department plans a fast-paced experimentation and assessment campaign culminating in a Military Utility Assessment by sponsoring Service Components. The agreements set terms for future firm-fixed-price production contracts and position the department to procure more than 10,000 low-cost cruise missiles across the portfolios within three years starting in 2027. The arrangements include firm fixed material-unit costs for production lots spanning 2027 through 2029.

Concurrently, Castelion’s program would transition to production after testing and validation, with a two-year multi-year procurement for at least 500 Blackbeard missiles annually and options to extend up to five years. To support the company’s self-funded facility expansion, the department is pursuing the necessary authorizations and appropriations to buy more than 12,000 Blackbeard missiles over five years.

Officials described the approach as a new model of commercial partnership in which several vendors will scale to production without direct department investment, emphasizing speed, innovation, and the use of private capital.

The LCCM experimentation and assessment campaign will be led by the Office of the Under Secretary of War for Research and Engineering. The Army Program Acquisition Executive Fires will serve as the transition partner and acquisition lead for procurement. Test missiles from all four LCCM companies are slated for purchase beginning in June 2026 to support the assessment phase. The agreements were developed in coordination with the United States Air Force Program Acquisition Executive Weapons, the Test Resource Management Center, and multiple components across the department, including the Office of the Under Secretary of War for Acquisition and Sustainment.

“We will deliver affordable mass for our warfighters at unprecedented speed,” said Under Secretary of War for Research and Engineering Emil Michael. “In concert with establishing a clear demand signal, these Framework Agreements commit American industry to on-time, on-cost delivery and investment in R&D and facilities. This commercial style of partnership is fully aligned with Secretary Hegseth’s Acquisition Transformation Strategy.”

The department framed the strategy as part of a broader push to expand the munitions industrial base with partners that can deliver capability at the tempo required by the Joint Force, reinforcing scalable production pathways that can surge as needed.

“Today’s announcement is the latest sign that our Acquisition Transformation Strategy is delivering on its promise to rebuild the Arsenal of Freedom,” said Michael Duffey, Under Secretary of War for Acquisition and Sustainment. “We are moving beyond the traditional prime contractors to expand our industrial base, accelerating testing timelines, and sending a clear, long-term demand signal to innovative new entrants.”