The Pentagon is set to announce on Wednesday framework agreements that would potentially allow it to acquire more than 10,000 low-cost missiles in containers over a period of three years starting in 2027.
According to a statement seen by Reuters before its release, these agreements with Anduril, CoAspire, Leidos, and Zone 5 mark the joint launch of the ‘Low-Cost Containerized Munitions’ (LCCM) program.
The evaluation phase of the program will involve purchasing test missiles from the four companies starting in June 2026. The document does not specify the investment amount or specific weapon systems, but it indicates that these agreements set the conditions for future firm price production contracts.
The army has long touted containerized weapon systems as a mobile and cost-effective way to deploy missiles in standard shipping containers.
A separate agreement with defense startup Castelion includes a two-year contract for the annual purchase of at least 500 Blackbeard missiles – Castelion’s first hypersonic strike weapon – once the company passes testing and validation stages, the statement said.
The Pentagon is seeking approvals and funding to acquire over 12,000 Blackbeard missiles over five years.
Michael Duffey, Under Secretary of Defense for Acquisition and Sustainment, stated in the release that these agreements demonstrate the United States’ intention to expand the industrial base by moving away from traditional prime contractors.
He added that these agreements send a ‘clear and long-term demand signal to innovative new entrants.’
Emil Michael, Under Secretary of Defense for Research and Engineering, emphasized that these contracts require companies to adhere to delivery schedules and costs.
‘We will provide our fighters with affordable firepower unprecedented speed,’ Mr. Michael said.
The Pentagon is increasing its funding requests to Congress for ammunition, which is in high demand due to the ongoing conflict in Iran.
General Dan Caine, Chief of Staff of the Armed Forces, stated in written testimony this week that the Pentagon’s budget for fiscal year 2027 would fund over $26 billion in multi-year procurement contracts for critical munitions.
[Fact Check: The Pentagon is making agreements with multiple companies to potentially purchase missiles in containers over a three-year period starting in 2027. These agreements also involve the purchase of hypersonic missiles and increased funding for critical munitions procurement.]
