DoW Secures 7-Year Agreements With General Dynamics and Lockheed Martin to Triple PAC-3 and Quadruple THAAD Production

View Online DoW Secures 7-Year Agreements With General Dynamics and Lockheed Martin to Triple PAC-3 and Quadruple THAAD Production Aug. 31, 2026 |  By War.gov WASHINGTON — The Department of War (DoW) announced the signing of two pivotal framework agreements with General Dynamics Ordnance and Tactical Systems (GD-OTS) and Lockheed Martin. These agreements initiate seven-year multiyear procurement (MYP) contracts designed to increase production quantities and accelerate delivery schedules for critical missile subcomponents supporting the Terminal High Altitude Area Defense (THAAD) and Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) interceptor programs. "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." General Dynamics will execute the rapid scale-up of highly specialized interceptor components. Key production goals under the new frameworks include: •    Tripling the production capacity of PAC-3 MSE interceptors. •    Quadrupling the production capacity of THAAD interceptors. •    Ramping up manufacturing for essential sub-components, including motor cases, seeker housings and midsections, and shroud deployment systems. The funding for these transformative agreements is subject to annual appropriations. These agreements provide industry with a stable, long-term demand signal by guaranteeing minimum annual procurement quantities which empowers General Dynamics and its lower-tier suppliers to make generational investments in workforce expansion, bulk material purchases, and facility upgrades. About the OUSW(A&S) The Office of the Under Secretary of War for Acquisition and Sustainment (OUSW(A&S)) equips the Joint Force and allies with secure, resilient, and decisive capabilities.  Driven by an unwavering commitment to the Warfighter, A&S executes a portfolio-driven strategy to field advanced technologies at speed and scale.  By accelerating acquisition and modernizing critical infrastructure, A&S is actively rebuilding the Arsenal of Freedom and securing our nation's enduring military advantage against any pacing threat.

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