# Army Seeks Low-Cost Interceptors

The U.S. Army is pursuing its Low-Cost Interceptor (LCI) competition with a target price below $1 million per round. Initial all-up-round demonstrations are scheduled for October–November 2026, with awards expected in December. AeroVironment, Anduril, and RTX are identified as selected demonstrators; Lockheed Martin is not in the initial group but says its PAC-3 Adapted Capability Effector could fit the requirement and is considering a later competition iteration. Further shoot-offs are planned for FY2027 and FY2028.

- The cost target and demonstration schedule give interceptor suppliers a near-term benchmark for shaping designs and preparing for the Army’s competition phases.
- Lockheed Martin’s potential participation in a later iteration could broaden the competitive field; its PAC-3 ACE is not an initial competitor.
- Companies pursuing the opportunity should account for the expected December 2026 awards and the Army’s planned follow-on shoot-offs in FY2027 and FY2028.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Published:** October 13, 2026

### Government Entities
- U.S. Army (Army)

### Vendors
- AeroVironment (Selected demonstrator)
- Anduril (Selected demonstrator)
- RTX (Selected demonstrator)
- Lockheed Martin (Potential future bidder)

### Sources
- [Lockheed Official Says New PAC-3 ACE ‘Could Be’ Solution For Army’s Low-Cost Interceptor - Defense Daily](https://www.defensedaily.com/lockheed-official-says-new-pac-3-ace-could-be-solution-for-armys-low-cost-interceptor/army) - Defense Daily