- DOW has signed framework agreements with Northrop worth more than $3 billion
- The deals will triple PAC-3 MSE and quadruple THAAD component production
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The Department of War has signed two framework agreements with Northrop Grumman worth more than $3 billion, in coordination with Lockheed Martin, to expand production capacity for components supporting the Patriot Advanced Capability-3 Missile Segment Enhancement, or PAC-3 MSE, interceptor and the Terminal High Altitude Area Defense, or THAAD, weapon system.
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DOW said Monday the agreements support the department’s Acquisition Transformation Strategy, which prioritizes direct engagement with suppliers across the industrial base. The approach gives suppliers the stability and long-term demand signals needed to invest in facility modernization, advanced tooling and workforce development.
The agreements build on a broader push to strengthen the missile-interceptor supply chain, following similar framework deals DOW previously signed with L3Harris to expand PAC-3 MSE and THAAD propulsion production.
The initiative was carried out in collaboration with the the Missile Defense Agency, Munitions Acceleration Council, the Economic Defense Unit and the Office of the Under Secretary of War for Acquisition and Sustainment.
What Do the Framework Agreements for PAC-3 & THAAD Components Cover?
The first agreement, valued at $2 billion, establishes Northrop as a second source of solid rocket motors for PAC-3 MSE and ramps up production of ignition safety devices for the interceptor. Creating a second source injects competition and resiliency into the supply chain supporting the system.
The second agreement, worth $1 billion, will quadruple production of THAAD interceptor structural components, including mid-body shells, muzzle covers and rail car assemblies, over a seven-year period.
Northrop said it is doubling solid rocket motor production capacity at its Utah facilities, nearly tripling capacity at the Allegany Ballistics Laboratory in West Virginia and increasing capacity by 25 percent at its Elkton, Maryland facility to meet the new demand. The company has produced PAC-3 MSE structural components since 2002 and manufactures THAAD structural parts at its San Diego facility.
What Did DOW & Northrop Officials Say About the Agreements?
“Building the Arsenal of Freedom requires robust, dynamic supply chains at every level of the industrial base,” said Michael Duffey, under secretary of war for acquisition and sustainment and a 2026 Wash100 awardee. “Framework agreements with munition components suppliers like Northrop Grumman are vital to accelerating the tripling of PAC-3 and quadrupling of THAAD interceptor production.”
Ben Davies, corporate vice president at Northrop, said the company’s long-term investments in manufacturing technology and supply chain resilience enable it to shift from steady-state production to a surge in record time. He added that the effort supports the administration’s push to accelerate munitions output and reinforce the country’s defense edge.
The initiative was carried out in collaboration 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.
