Lockheed Martin and General Dynamics land Pentagon deals, tripling missile output

The Pentagon signed seven-year framework agreements with Lockheed Martin and General Dynamics to expand missile defense interceptor production. These deals aim to triple the production capacity for the Patriot Advanced Capability-3 (PAC-3) MSE. The contracts also seek to quadruple the output for the Terminal High Altitude Area Defense (THAAD) system.

The multiyear procurement structure provides a stable demand signal by guaranteeing minimum annual purchase quantities. This stability allows contractors and suppliers to make long-term investments in workforce, facilities, and materials. While the agreements accelerate delivery schedules for critical subcomponents, all funding remains subject to annual appropriations.