The U.S. Department of War announced Monday a new effort to expand the domestic supply chain for two of the nation’s most important missile defense systems, marking another major investment in Huntsville’s defense industrial base just days after the Army awarded Lockheed Martin a multibillion-dollar production contract with work centered at Redstone Arsenal.
The department announced framework agreements with Northrop Grumman to increase production capacity for critical components used in the Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement interceptor and the Terminal High Altitude Area Defense (THAAD) system.
The agreements are intended to help triple PAC-3 production and quadruple THAAD production by providing long-term demand commitments to key suppliers, allowing companies to invest in additional manufacturing capacity, workforce development and facility modernization.
“Building the Arsenal of Freedom requires robust, dynamic supply chains at every level of the industrial base,” said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment. “Framework agreements with munition components suppliers like Northrop Grumman are vital to accelerating the tripling of PAC-3 and quadrupling of THAAD interceptor production.”
Rather than relying solely on prime contractors, the Department of War said it is working directly with critical suppliers to strengthen the defense industrial base and reduce production bottlenecks.
Under the PAC-3 agreement, Northrop Grumman will establish a second domestic source for solid rocket motors while increasing production of ignition safety devices. For THAAD, the company will expand manufacturing of interceptor structural components, including mid-body shells, muzzle covers and rail car assemblies.
The announcement follows last week’s Army award of a $53.86 billion contract modification to Lockheed Martin for PAC-3 Missile Segment Enhancement production. The July 29 modification converted a one-year undefinitized contract action into a seven-year multiyear procurement, bringing the total contract value to $58.62 billion.
The contract includes significant work in Huntsville, along with manufacturing at facilities in Arkansas, Florida, California, Kansas, Massachusetts, Nebraska, New York, Pennsylvania, Texas, Vermont and West Virginia. The work is expected to continue through March 31, 2035.
Lockheed Martin said the multiyear award will enable the company to triple PAC-3 production by the end of the decade while expanding its manufacturing workforce and facilities nationwide.
Monday’s announcement represents the next phase of that broader production strategy by focusing on suppliers that manufacture the components needed to build the interceptors.
The Department of War said the agreements support President Donald Trump’s Executive Order 14307, “Unleashing American Drone Dominance,” and Secretary of War Pete Hegseth’s initiative to build what the administration has called the “Arsenal of Freedom.”
Officials said the initiative is part of the department’s Acquisition Transformation Strategy, developed in coordination with the Munitions Acceleration Council, the Economic Defense Unit, the Missile Defense Agency and the Office of the Under Secretary of War for Acquisition and Sustainment.
Huntsville remains a central hub for both missile defense programs, serving as home to the Missile Defense Agency, Army Contracting Command at Redstone Arsenal and major Lockheed Martin operations supporting PAC-3 and THAAD production.
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