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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

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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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