Pentagon Awards $7.8 Billion in Missile Contracts to Strengthen U.S. and Allied Defense

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The U.S. Department of Defense has awarded two missile procurement contracts totaling $7.8 billion to support the operational needs of U.S. forces and select international allies. The decision reflects a strategic shift toward multiyear acquisitions to meet growing demand for advanced precision-guided munitions.

Lockheed Martin received the larger of the two contracts, valued at roughly $4.3 billion, for the production of Joint Air to Surface Standoff Missiles (JASSMs) and Long-Range Anti-Ship Missiles (LRASMs). These systems will support the U.S. Air Force and Navy, along with allied nations such as Japan, Finland, Poland, and the Netherlands.

The second contract, awarded to RTX (formerly Raytheon Technologies), covers the procurement of AIM-120D Advanced Medium-Range Air-to-Air Missiles (AMRAAMs). This represents the largest contract in the AMRAAM program’s history, supporting both U.S. forces and allies, including the United Kingdom, Canada, Germany, and Israel.

Pentagon officials described the contracts as a shift toward long-term procurement agreements aimed at reinforcing industrial capacity. By committing to sustained production, the Department aims to reduce supply chain bottlenecks, stabilize unit costs, and encourage industry investment in expanded operations.

Initial funding obligations exceed $1.4 billion, including $1.1 billion from the Air Force’s procurement budget. Both contracts are expected to fund missile production through the early 2030s, reflecting the Pentagon’s broader commitment to ensuring stockpile readiness amid growing security challenges.

Defense planners consider increased production of JASSMs, LRASMs, and AMRAAMs essential for maintaining deterrence and operational readiness amid rising global tensions. The weapons play a central role in joint air and maritime operations and are frequently requested by partners looking to bolster their strategic capabilities. The multiyear agreements are among the most substantial missile procurement efforts in recent U.S. defense history. These weapons play a central role in joint air and maritime operations and are often requested by partners seeking to enhance their strategic capabilities.