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DoW signs 7-year deals with General Dynamics and Lockheed Martin to triple PAC-3 output and quadruple THAAD production

Alyssa Taiclet by Alyssa Taiclet
August 31 2026
in Defense
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The Department of War has signed two framework agreements with General Dynamics Ordnance and Tactical Systems and Lockheed Martin that set in motion seven-year multiyear procurement contracts to boost output and speed deliveries of missile subcomponents for the Terminal High Altitude Area Defense and Patriot Advanced Capability-3 Missile Segment Enhancement interceptor programs.

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“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,” said Under Secretary of War for Acquisition and Sustainment Michael P. Duffey. “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.”

Under the new frameworks, General Dynamics will lead a rapid expansion of production for highly specialized interceptor components. Targets include tripling PAC-3 MSE interceptor capacity, quadrupling THAAD interceptor capacity, and increasing output of key subcomponents such as motor cases, seeker housings and midsections, and shroud deployment systems.

Funding for the arrangements remains subject to annual appropriations. The agreements commit to minimum yearly purchase quantities intended to provide industry with stable demand and enable investments in workforce growth, bulk material buys, and facility upgrades across General Dynamics and its lower-tier suppliers.

Tags: Department of DefenseLockheed MartinPAC-3THAAD
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Alyssa Taiclet

Alyssa Taiclet

Alyssa Taiclet is an experienced journalist reporting on all aspects of the military, from the Army and Air Force to the Navy, Marines and the Space Force. She delivers in-depth coverage of defence strategy, operations and capability around the globe.

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