The Pentagon on Wednesday signed framework agreements with five defense contractors to mass-produce thousands of low-cost cruise and hypersonic missiles, responding to a munitions shortage created by the ongoing conflict with Iran.
Under the Low-Cost Containerized Missiles program, four companies, Anduril, CoAspire, Leidos, and Zone 5, will compete to deliver more than 10,000 cruise missiles to the military beginning in 2027. A separate agreement with aerospace company Castelion targets production of at least 500 Blackbeard hypersonic missiles annually.
The LCCM contracts run from 2027 through 2029 under firm fixed-price terms, meaning taxpayers bear no additional cost if contractor expenses rise. Test missiles from all four LCCM vendors are set to be procured as early as June.
The agreements are part of the Pentagon’s Arsenal of Freedom initiative, which prioritizes commercial-speed contracting and private-sector investment over traditional procurement timelines.
“Today’s announcement is the latest sign that our Acquisition Transformation Strategy is delivering on its promise to rebuild the Arsenal of Freedom,” said Michael Duffey, under secretary of defense for acquisition and sustainment. “We are moving beyond the traditional prime contractors to expand our industrial base, accelerating testing timelines, and sending a clear, long-term demand signal to innovative new entrants.”
Sen. Roger Wicker (R-MS), Chairman of the Senate Armed Services Committee, said the agreements were a direct product of congressional action.
“I am glad to see these urgently needed agreements, which are a direct result of collaboration between the Congress and the Pentagon to fundamentally change our approach in defense procurement,” Wicker said. “Congress got started by appropriating significant sums in last year’s Working Families Tax Cut act for low-cost weapons, and today’s announcement is a validation of that approach. It demonstrates the kind of return on investment we can expect more of if we work together to make a generational investment in our national defense with the fiscal year 2027 budget.”
The urgency behind the deals stems from rapid munitions consumption during the Iran conflict. The U.S. has reportedly expended more than 1,000 Tomahawk cruise missiles and drawn down nearly half its Precision Strike Missile stockpile over the 2.5-month conflict, according to the Washington Times.
