Department of War signs multi-year deals to boost Patriot and THAAD interceptor output

The Department of War announced on Monday a series of seven-year framework contracts with General Dynamics Ordnance and Tactical Systems and Lockheed Martin designed to expand the manufacturing capacity of key missile-defense interceptors. The plan calls for a threefold increase in PAC-3 Missile Segment Enhancement missiles and a fourfold rise in THAAD interceptors, with an emphasis on boosting subcomponent production and shortening delivery timelines.

Michael Duffey, the Undersecretary of War for Acquisition and Sustainment, described the agreements as an evolution in industry partnership to grow the "Arsenal of Freedom" and stay ahead of threats. This deal fits into a larger strategy to revitalize the defense industrial base, cut red tape, and welcome emerging non-defense firms into the supply chain. Pentagon officials note that recent conflicts, including the Iran war, have driven heavy use of these systems, prompting a need to replenish stocks, though they deny any readiness shortfall. Each interceptor costs seven figures, prompting the department to also explore cost-saving technologies and newer variants.