The Pentagon on Wednesday signed framework agreements with four defense contractors to mass-produce low-cost cruise and hypersonic missiles, as U.S. officials work to expand domestic stockpiles.
The agreements encompass two parallel programs. Anduril, CoAspire, Leidos and Zone 5 will compete under the Low-Cost Containerized Missiles program, designed to deliver more than 10,000 cruise missiles to the Pentagon starting in 2027.
A separate agreement with U.S. aerospace company Castelion targets production of at least 500 hypersonic Blackbeard missiles annually.
The LCCM program runs from 2027 through 2029 with “firm fixed-price production contracts,” meaning taxpayers bear no risk if company costs rise. Test missiles from all four vendors are set to be procured as early as June.
The agreements come as the Pentagon faces a munitions crisis following the launch of the Iran war. The U.S. has reportedly expended more than 1,000 Tomahawk cruise missiles and drawn down nearly half its Precision Strike Missile stockpile during the 2½-month conflict. Analysts warn it could take four to five years to replenish those stocks.
The moves are also part of the Pentagon’s Arsenal of Freedom initiative, which prioritizes commercial-speed contracting and private sector investment over traditional procurement methods.
“Today’s announcement is the latest sign that our Acquisition Transformation Strategy is delivering on its promise to rebuild the Arsenal of Freedom,” Michael Duffey, under secretary of defense for acquisition and sustainment, said in a statement. “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.”
Some in Congress praised the initiative as an important step in changing U.S. procurement strategies for the better.
“I am glad to see these urgently needed agreements, which are a direct result of collaboration between the Congress and the Pentagon to fundamentally change our approach in defense procurement,” said Sen. Roger Wicker, chairman of the Senate Armed Services Committee.
“Congress got started by appropriating significant sums in last year’s Working Families Tax Cut act for low-cost weapons, and today’s announcement is a validation of that approach. It demonstrates the kind of return on investment we can expect more of if we work together to make a generational investment in our national defense with the fiscal year 2027 budget,” said Mr. Wicker, Mississippi Republican.
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