Federal News
DoD Accelerates PAC-3 Missile Production
March 25, 2026
The Department of Defense is rapidly expanding production of nearly 2,000 PAC-3 missiles to address munitions depletion amid ongoing operations, driven by the Munitions Acceleration Council chaired by Deputy Defense Secretary Steven Feinberg. This initiative includes efforts to significantly increase manufacturing capacity for critical missile systems such as Lockheed Martin's Patriot and Raytheon's Standard Missile-6, supported by policy reforms and Defense Production Act authorities. However, military officials have not specified future targets for the proportion of low-cost munitions, reflecting ongoing strategic considerations in balancing cost and capability.
- The accelerated missile production signals increased contract opportunities for prime contractors including Lockheed Martin, Raytheon Technologies, L3Harris, Northrop Grumman, and Boeing.
- Procurement professionals should anticipate expanded manufacturing operations and potential policy-driven funding increases under the FY 2026 National Defense Authorization Act, which allocates $161.7 billion for defense procurement.
- Contractors and suppliers should evaluate capacity and supply chain readiness to meet the Defense Department's rapid production goals and leverage Defense Production Act provisions.
- The absence of clear low-cost munitions targets suggests flexibility in future procurement strategies, requiring contractors to remain adaptable to evolving DoD requirements.
The Munitions Acceleration Council aims to double or quadruple production of 12 critical systems, including Patriot interceptors and Long Range Anti-Ship Missiles.
— Steve Feinberg, Deputy Defense Secretary
Agencies
Department of Defense, Pentagon, U.S. Congress, U.S. Central Command, White House
Vendors
Lockheed Martin, Raytheon Technologies (RTX), L3Harris, Northrop Grumman, Boeing
Contracts
, $161.7 billion