The Department of War has signed a series of agreements with Lockheed Martin, BAE Systems and Honeywell Aerospace to accelerate missile production and expand critical component manufacturing, part of a broader push to place the defense industrial base on a “wartime footing.”
Announced Tuesday by DOW, the coordinated effort spans interceptor systems, precision strike weapons and key subsystems, signaling a shift toward securing capacity across the full supply chain — not just prime contractors — as the Pentagon works to rapidly scale munitions output.
How Will the Agreements Expand Missile Production?
A central element of the effort includes a framework agreement with BAE Systems and Lockheed to quadruple production of seekers for the Terminal High Altitude Area Defense interceptor. THAAD uses kinetic force to intercept adversarial missiles during the terminal flight phase. In 2020, Lockheed awarded BAE Systems a contract to produce an infrared seeker technology for the weapon system.
“This agreement with BAE Systems sends a clear, stable, long-term demand signal,” said Michael Duffey, under secretary of war for acquisition and sustainment. “We are providing the certainty our partners need to invest, expand, and hire. This is how we place the industrial base on a wartime footing,” the 2026 Wash100 Award recipient said.
In parallel, the department reached a separate deal with Lockheed to accelerate production of the Precision Strike Missile, with investments in tooling, facility upgrades and testing infrastructure aimed at reducing lead times and increasing delivery speed. The partnership builds on a $4.94 billion U.S. Army contract awarded in 2025 to produce PrSM Increment 1 weapon systems.
What Role Do Suppliers Play in the Strategy?
DOW is also targeting deeper tiers of the supply chain through a new agreement with Honeywell Aerospace to expand production of key munitions technologies, including navigation systems, actuators and electronic warfare components.
According to the department, the deal unlocks a $500 million multiyear investment from Honeywell to modernize manufacturing and increase the output of components that underpin missile performance.
How Does This Fit Into Broader Acquisition Reform?
Duffey said the agreements with Lockheed, BAE Systems and Honeywell align with efforts to build the “deep and dominant Arsenal of Freedom.”
They are also part of DOW's Acquisition Transformation Strategy and are being implemented through the Munitions Acceleration Council, which focuses on removing barriers and accelerating production across the defense industrial base.
