The US Department of War has signed seven-year framework agreements with General Dynamics and Lockheed Martin to increase production of key missile-defense systems. The plan aims to triple PAC-3 MSE interceptor production and quadruple THAAD interceptor production.
The agreements are part of multiyear procurement plans for components used in the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) and Terminal High Altitude Area Defense (THAAD) programs. The US government says the deals are intended to expand manufacturing capacity and speed up deliveries.
General Dynamics Ordnance and Tactical Systems (GD-OTS) will handle the rapid expansion of several specialized interceptor components. These include motor cases, seeker housings, midsections and shroud deployment systems.
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Under the new agreements, PAC-3 MSE production capacity is expected to increase threefold. THAAD interceptor production capacity is planned to rise fourfold.
The seven-year agreements are designed to give manufacturers a clearer view of future demand. The contracts include minimum annual procurement quantities, allowing General Dynamics and its suppliers to plan larger investments.
These investments could include hiring more workers, purchasing materials in bulk and upgrading production facilities. However, funding for the agreements will still depend on annual US government appropriations.
Lockheed Martin is another major industry partner under the framework agreements. The company is the prime contractor for the PAC-3 MSE and THAAD interceptor programs and will support the wider effort to increase missile-defense production.
The Department of War says the agreements are intended to reduce delays and expand domestic manufacturing capacity for air and missile defense systems.
PAC-3 MSE and THAAD are designed to defend against different types of missile threats. PAC-3 MSE is part of the Patriot air and missile defense system, while THAAD is designed to intercept ballistic missiles at higher altitudes.
Increasing production could help the US and its allies build larger inventories of interceptors. It could also give manufacturers more capacity to respond to future demand.
The production targets depend on continued government funding. While the seven-year agreements provide companies with longer-term demand signals, actual procurement will remain subject to annual appropriations.
The scale-up will also require expanded manufacturing facilities, trained workers and reliable supplies of specialized components.
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The agreements mark a major effort to expand the US missile-defense industrial base. If the planned increases are achieved, the higher production capacity could help shorten delivery times and provide more interceptors for US forces and allied countries.
Under Secretary of War for Acquisition and Sustainment Michael P. Duffey said the agreements are intended to cut procurement delays and expand domestic manufacturing capacity for advanced air and missile defense systems.
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