- Pentagon launches major push for low-cost missile production at scale
- Anduril, Leidos, CoAspire and Zone 5 tapped for cruise missile effort
- The initiative reflects a broader shift toward faster, commercially driven defense procurement
The Department of War has launched a major push to expand the nation’s long-range strike capacity, signing framework agreements with defense technology firms Anduril, Leidos, CoAspire and Zone 5 to rapidly scale production of low-cost cruise missiles under the Low-Cost Containerized Munitions program, or LCCM.
The initiative also includes a parallel agreement with hypersonic startup Castelion to advance large-scale production of the Blackbeard hypersonic missile, DOW said Wednesday. Together, the efforts reflect the Pentagon’s accelerating shift toward affordable, mass-producible strike weapons as part of President Donald Trump and Secretary of War and Wash100 awardee Pete Hegseth’s “Arsenal of Freedom” strategy.
Under the framework agreements, DOW aims to procure more than 10,000 low-cost cruise missiles over three years beginning in 2027, while separately pursuing the acquisition of more than 12,000 Blackbeard hypersonic missiles over five years pending testing, validation and congressional funding approvals.
These priorities will be featured at several upcoming Potomac Officers Club events, including the 2026 Army Summit on June 18, where officials will discuss cost-effective fires, commercial capability integration and battlefield modernization efforts tied to the Army’s transformation strategy.
The conversation will continue at the 2026 Air and Space Summit on July 30, which will examine advanced military technologies and next-generation operational capabilities across the air and space domains.
Naval modernization, autonomous systems and emerging defense technologies will also take center stage at the 2026 Navy Summit on Aug. 27, bringing together senior Navy leaders and defense industry executives to discuss the future of maritime operations and defense innovation.
How Is the Pentagon Reshaping Defense Procurement for Scalable Strike Production?
The agreements mark one of the clearest signs yet that Pentagon acquisition leaders are moving beyond traditional defense procurement models in favor of commercially driven production partnerships with emerging defense technology companies.
Emil Michael, under secretary of war for research and engineering and a 2026 Wash100 Award winner, said the initiative is designed to rapidly deliver affordable strike capacity while incentivizing private sector investment in production infrastructure and research and development.
“We will deliver affordable mass for our warfighters at unprecedented speed,” Michael said. “This commercial style of partnership is fully aligned with Secretary Hegseth’s Acquisition Transformation Strategy.”
Michael Duffey, under secretary of war for acquisition and sustainment and a 2026 Wash100 Award recipient, said the DOW is moving beyond the traditional prime contractors to expand the industrial base, accelerate testing timelines, and send a “clear, long-term demand signal to innovative new entrants.”
How Are Defense Companies Supporting the LCCM Push?
Leidos will produce an initial 3,000 LCCMs under its framework agreement with the Pentagon, leveraging technologies developed through the company’s AGM-190A Small Cruise Missile program.
Tom Bell, Leidos chairman and CEO and a three-time Wash100 Award winner, said the agreement demonstrates the department’s confidence in the company’s missile technology capabilities and production approach.
“We’re answering the Department of War’s call to revolutionize the procurement of critical capabilities at scale, with a focus on speed to operational capability,” Bell said.
Leidos plans to expand operations in Huntsville, Alabama, and McEwen, Tennessee, to support missile production.
Anduri's production agreement with DOW covers at least 3,000 surface-launched Barracuda-500M cruise missiles and more than 60 launch systems.
The company said the Barracuda-500M was specifically designed for high-volume production using commodity components and open-architecture designs to reduce costs and mitigate supply chain risks. Anduril has already invested more than $40 million into a dedicated Barracuda production facility in Southern California and plans to eventually shift manufacturing to its Arsenal-1 hyperscale production site in Ohio.
DOW's framework agreement with CoAspire is for the additively manufactured GHOST cruise missile, a surface-launched variant of the company's Rapidly Adaptable Affordable Cruise Missile-Extended Range platform.
CoAspire said additive manufacturing enables the development of new missile variants in months rather than years.
