Department of War Signs Framework Agreements with Northrop Grumman to Ramp Production of PAC-3, THAAD Components

 

The Department of War, in cooperation with Northrop Grumman and Lockheed Martin, today announced two framework agreements to expand production capacity of critical missile-interceptor components. These historic agreements are critical to ensuring long-term demand signals flow to key suppliers, allowing Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD) production to triple and quadruple, respectively. This effort to stabilize supply chains for our most important interceptors advances President Trump's and Secretary Hegseth's joint vision to build the Arsenal of Freedom, accelerate delivery of critical capabilities, and reinforce the Nation's integrated air and missile defense.

“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.”    

This initiative is a direct application of the Department's Acquisition Transformation Strategy, which prioritizes engaging directly with key suppliers at all levels of the industrial base. Rather than relying solely on prime contractors, the Department is establishing strategic agreements with critical suppliers. This approach ensures the entire supply chain has the stability and long-term demand signals necessary to invest in advanced tooling, facility modernization, and workforce development to scale production.

Under these landmark agreements, the Department of War is driving significant capacity increases across two critical defense programs. First, for the PAC-3 Missile Segment Enhancement (MSE), this framework agreement establishes a second source for Solid Rocket Motors (SRMs). By providing a steady demand signal for a second source, the Department of War is driving stability and competition into the supply chain, creating a more resilient industrial base. Additionally, the agreement ramps up production of ignition safety devices for PAC-3.  Second, for THAAD Component Production, this framework agreement will quadruple the production of THAAD interceptor structural components. This includes critical parts such as mid-body shells, muzzle covers and rail car assemblies.

This initiative demonstrates the Department's revitalized Acquisition Transformation Strategy, executed in collaboration with 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.