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Patriot PAC-3 / THAAD Components Framework Agreements

Two parallel 7-year, $3B combined framework agreements making Northrop Grumman a second supplier of PAC-3 rocket motors and expanding its THAAD structural-component manufacturing.

The U.S. Department of War signed two parallel 7-year framework agreements with Northrop Grumman worth $3 billion combined: a $2B agreement establishing Northrop as a second supplier of solid rocket motors and ignition safety devices for the Patriot PAC-3 MSE interceptor (production at Allegany Ballistics Laboratory, Rocket Center, WV, and Elkton, MD), and a $1B agreement increasing Northrop's manufacturing of THAAD structural components — interceptor shell cores, aft bulkheads, and heat shield assemblies using proprietary bonding technology — at its San Diego facility. This is distinct from Lockheed Martin's existing $35.5B, 7-year THAAD interceptor production contract (contract:lockheed-thaad-production-2026): Lockheed remains the prime integrator scaling THAAD interceptor output from 96 to ~400/year, while Northrop is a second/backup component and rocket-motor source feeding that production, not a competing prime. Likewise, L3Harris remains the incumbent sole-source PAC-3 rocket-motor producer; Northrop's June 2026 second-source qualification and this framework agreement add supply-chain redundancy rather than replacing L3Harris. Part of DOD's Acquisition Transformation strategy to use multiyear agreements to entice contractors to invest their own capital in scaling munitions production.

Award detail

Agency
U.S. Army
Award ID
Ceiling value
$3B combined ($2B PAC-3; $1B THAAD)
Vehicle
Two parallel 7-year framework agreements
Awarded
2026-08-03
Period of performance ends

Recipient1

Programs0

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Frequently asked

What is the Patriot PAC-3 / THAAD Components Framework Agreements contract?
The U.S. Department of War signed two parallel 7-year framework agreements with Northrop Grumman worth $3 billion combined: a $2B agreement establishing Northrop as a second supplier of solid rocket motors and ignition safety devices for the Patriot PAC-3 MSE interceptor (production at Allegany Ballistics Laboratory, Rocket Center, WV, and Elkton, MD), and a $1B agreement increasing Northrop's manufacturing of THAAD structural components — interceptor shell cores, aft bulkheads, and heat shield assemblies using proprietary bonding technology — at its San Diego facility. This is distinct from Lockheed Martin's existing $35.5B, 7-year THAAD interceptor production contract (contract:lockheed-thaad-production-2026): Lockheed remains the prime integrator scaling THAAD interceptor output from 96 to ~400/year, while Northrop is a second/backup component and rocket-motor source feeding that production, not a competing prime. Likewise, L3Harris remains the incumbent sole-source PAC-3 rocket-motor producer; Northrop's June 2026 second-source qualification and this framework agreement add supply-chain redundancy rather than replacing L3Harris. Part of DOD's Acquisition Transformation strategy to use multiyear agreements to entice contractors to invest their own capital in scaling munitions production.
Which agency awarded the Patriot PAC-3 / THAAD Components Framework Agreements contract?
The Patriot PAC-3 / THAAD Components Framework Agreements contract was awarded by U.S. Army under a Two parallel 7-year framework agreements vehicle.
How much is the Patriot PAC-3 / THAAD Components Framework Agreements contract worth?
The Patriot PAC-3 / THAAD Components Framework Agreements contract has a value of $3B combined ($2B PAC-3; $1B THAAD), awarded on 2026-08-03.

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Sources & citations3

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  1. 1

    Northrop Grumman enters into $3 billion in landmark framework agreements: $2B to become a second supplier of PAC-3 MSE solid rocket motors, $1B to increase THAAD structural-component manufacturing; 7-year agreements

    Northrop Grumman (Official): Northrop Grumman Enters Into $3 Billion Landmark Agreements to Accelerate Missile Interceptor Production
    Verified2026-08-03
  2. 2

    Pentagon inks combined $3 billion framework agreement with Northrop Grumman for Patriot and THAAD components; Northrop becomes second supplier of Patriot rocket motors and increases THAAD structural-component manufacturing

    DefenseScoop: Pentagon inks $3B framework agreement for Patriot, THAAD components
    Verified2026-08-03
  3. 3

    Northrop signs $3B in framework deals to boost PAC-3 MSE and THAAD component production; L3Harris has been the sole PAC-3 rocket-motor producer since program inception, Northrop qualified as second source in June 2026

    Breaking Defense: Northrop gets $3B framework deal to increase motor production for PAC-3, THAAD
    Verified2026-08-03