# Defense Contractors Expand Munitions Production

Northrop Grumman and Lockheed Martin are actively advancing munitions production efforts aligned with Pentagon priorities amid ongoing budget and legislative uncertainties. Northrop Grumman is negotiating to become a second source supplier for PAC-3 missile solid rocket motors and is engaged in discussions on eight weapons programs. Lockheed Martin is investing in munitions manufacturing and new launch systems, emphasizing the need for full congressional funding to support long-term production agreements. Recent contracts include a **$3 billion framework agreement** to increase solid rocket motor production for PAC-3 and THAAD missiles and a contract between Lockheed Martin and GM Defense for mission-critical PAC-3 components.

- **Why this matters:** Procurement professionals should note the Pentagon's focus on expanding and modernizing missile production capabilities, creating opportunities for contractors in solid rocket motors and interceptor systems.
- The fiscal environment remains uncertain due to continuing resolutions, but companies currently have funding to sustain work into early 2027.
- Organizations involved in missile systems supply chains may find increased demand for long-term production agreements covering PAC-3, THAAD, Precision Strike Missile, and AIM-260 JATM.
- Contractors should consider the implications of congressional funding timelines on contract stability and production planning.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Contracting Vehicles
**Published:** September 17, 2026

### Government Entities
- Department of Defense (DoD)
- U.S. Air Force

### Vendors
- Northrop Grumman (prime contractor)
- Lockheed Martin (prime contractor)
- GM Defense (subcontractor)

### Key Quotes
> It does cost the government more when we have these extended periods of continuing resolution. But at the end of the day, as we look at our programs, we have the funding we need to continue work and believe that’s the case even into early next year.
> — Kathy Warden, Chief Executive Officer, Northrop Grumman

> We do need Congress to come in for the full funding of the whole seven years, if you will.
> — Jim Taiclet, Chief Executive Officer, Lockheed Martin

### Sources
- [Northrop eyes munitions supply work, Lockheed eyes funding: CEOs - Breaking Defense](https://breakingdefense.com/2026/09/northrop-eyes-munitions-supply-work-lockheed-eyes-funding-ceos) - Breaking Defense