Department of War signs framework deals with Northrop Grumman to ramp up production of PAC-3 and THAAD components

The Department of War announced two framework agreements with Northrop Grumman and Lockheed Martin to expand production capacity for critical missile-interceptor components, moves intended to send long-term demand signals to suppliers and enable significant output increases across the Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD) programs. The agreements are designed to support a planned tripling of PAC-3 production and a quadrupling of THAAD interceptor output, part of a broader push to reinforce the Nation’s integrated air and missile defense and advance the administration’s “Arsenal of Freedom” initiative.

“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.”

Officials said the initiative reflects the Department’s Acquisition Transformation Strategy, which emphasizes direct engagement with key suppliers at multiple tiers of the industrial base rather than relying solely on prime contractors. By establishing strategic agreements with critical component makers, the Department aims to provide the stability and long-term demand signals needed for investment in advanced tooling, facility modernization, and workforce development to scale production.

Under the PAC-3 Missile Segment Enhancement effort, the agreements establish a second source for Solid Rocket Motors, a step intended to add stability and competition to the supply chain and build a more resilient industrial base. The Department is also increasing production of ignition safety devices for PAC-3. On the THAAD program, the framework is set to quadruple production of interceptor structural components, including mid-body shells, muzzle covers, and rail car assemblies.

The effort involves coordination across multiple entities, including 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. Officials framed the capacity expansion as part of a sustained campaign to accelerate delivery of critical capabilities and strengthen the industrial base underlying key air and missile defense systems.