DoW signs deals with General Dynamics, Lockheed to boost missile output

Investing.com - The U.S. Department of War signed seven-year framework agreements with General Dynamics Ordnance and Tactical Systems and Lockheed Martin to expand production of missile defense interceptors. The multiyear procurement contracts aim to increase output and speed delivery of components for the Terminal High Altitude Area Defense and Patriot Advanced Capability-3 Missile Segment Enhancement programs.

General Dynamics will triple production capacity of PAC-3 MSE interceptors and quadruple output of THAAD interceptors under the agreements. The company will scale up manufacturing of motor cases, seeker housings and midsections, and shroud deployment systems.

"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."

The agreements provide guaranteed minimum annual procurement quantities to enable long-term planning by contractors and suppliers. The stable demand signal allows companies to invest in workforce expansion, bulk material purchases, and facility upgrades.

Funding for the agreements remains subject to annual appropriations by Congress.

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