# US Army Advances Anthem Missile Procurement

Covenant Industries, a US-Israeli defense startup founded in 2024, is progressing rapidly with its Anthem ground-launched cruise missile program targeting affordable mass production with a mid-six-figure unit cost. The US Army has entered an Other Transaction Agreement to accelerate testing and qualification, aiming for a fiscal year 2027 demonstration. Concurrently, the US Navy Rapid Capabilities Office awarded a $70 million contract in 2026 for a maritime variant of the Anthem missile, including funding for Defense Exportability Features. Serial production is planned to begin in Q1 2027 at manufacturing facilities in Grand Prairie, Texas, and Leipzig, Germany, with allied sovereign production lines enabling direct procurement by allied governments.

- The Army's Other Transaction Agreement signals a streamlined acquisition approach to rapidly field the Anthem missile, emphasizing affordability and scalability.
- The Navy's $70 million contract for the maritime variant highlights cross-service interest and investment in versatile missile capabilities.
- Production in both the US and Germany supports allied interoperability and potential foreign military sales, expanding market opportunities for contractors.
- Procurement professionals should note the accelerated timelines and consider engagement opportunities in testing, qualification, and production phases, especially in missile systems and exportable defense technologies.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Contracting Vehicles
**Published:** September 16, 2026

### Government Entities
- US Army (Army)
- US Navy Rapid Capabilities Office
- German Defence Ministry

### Vendors
- Covenant Industries (prime contractor)

### Key Quotes
> I did not want to limit myself to a $500,000 Covenant cruise missile solution, Covenant is in the mix.
> — Lt. Gen. Frank Lozano, US Army Portfolio Acquisition Executive for Fires

### Sources
- [Covenant Anthem Missile: Specs, Cost, US Army Status](https://quwa.org/north-america/profile-covenant-industries-anthem-ground-launched-cruise-missile) - quwa.org