Pentagon Directs Manufacturers to Speed Missile Supplies

Framework agreements with Lockheed, BAE, and Honeywell are part of the effort to accelerate defense procurement practices, and will lead to investments in new manufacturing capacity for missile systems.
March 27, 2026
3 min read

The U.S. Dept. of War has reached framework agreements with three top defense manufacturers in a move to speed production of ballistic missile systems, including interceptor systems. Each of the agreements - with Lockheed Martin, BAE Systems, and Honeywell Aerospace - is characterized as part of the Pentagon’s Acquisition Transformation Strategy, an initiative announced last fall to shift the Department from process-driven procurement to an accelerated model ("wartime footing") that prioritizes rapid delivery and production capacity.

"By empowering industry to invest in the factory floor, we are building a decisive and enduring advantage for our warfighters to outpace any potential adversary," according to undersecretary of War for Acquisition and Sustainment Michael Duffey.

With Lockheed Martin, the Pentagon agreement authorizes the manufacturer to accelerate production of the Precision Strike Missiles (PrSM). Lockheed will make targeted investments in advanced tooling, facility modernization, and critical testing equipment to cut production lead times, aiding the Department effort to ensure deep-strike capability can be delivered faster and more efficiently than is currently possible.

The PrSM is a new U.S. Army weapon system able to neutralize targets at a range beyond 400 kilometers. According to Lockheed, the new agreement expands a $4.94-billion U.S. Army contract from 2025, and will result in it quadrupling PrSM production capacity.

The Pentagon also worked out a joint agreement with Lockheed and BAE Systems to quadruple production of “seekers” for the Terminal High Altitude Area Defense (THAAD) interceptor. These are advanced, uncooled infrared sensors located in the nose of the missile that detect, track, and lock onto incoming ballistic missiles during their final, terminal phase. They involve high-sensitivity infrared technology that guides missiles to destroy threats by kinetic impact rather than explosives.

The Pentagon noted the agreement will provide stability to BAE Systems as it makes long-term investments that will ensure these sensors are readily available “and delivered at speed and scale to deter and defeat any adversary.”

Last, the Pentagon announced a framework agreement with Honeywell Aerospace “to surge production of critical components for America's munitions stockpile,” including navigation systems, Honeywell Assure™ actuators, and electronic warfare control systems. With the agreement in place, Honeywell is cleared to proceed with a $500-million multi-year investment to modernize and expand its manufacturing capacity.

"Our strategy is to provide the long-term demand signals that unlock private investment, and this half-billion-dollar commitment from Honeywell Aerospace demonstrates we are succeeding," according to Duffey.

About the Author

Robert Brooks

Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries.

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