Pentagon launches new framework agreements to acquire 10,000 low-cost cruise missiles

WASHINGTON — The Pentagon announced today it has reached framework agreements with a handful of vendors to procure over 10,000 low-cost cruise missiles over three years beginning in 2027. 

The agreements with Anduril, CoAspire, Leidos and Zone 5 commence the launch of the new Low Cost Containerization Munitions Program (LCCMP), according to a Defense Department release published today. 

“In concert with establishing a clear demand signal, these Framework Agreements commit American industry to on-time, on-cost delivery and investment in R&D and facilities,” Emil Michael, the Pentagon’s CTO and under secretary for Research and Engineering, said in the release. “This commercial style of partnership is fully aligned with Secretary Hegseth’s Acquisition Transformation Strategy.” 

The Defense Department will begin purchasing test missiles from the four companies beginning next month, the release read, and the agreements include firm-fixed material unit costs for production lots in 2027 through 2029. 

“Across these framework agreements, several of these new vendors will reach production scale without direct Department investment, reflecting a new model of commercial partnership that rewards speed, innovation, and private sector capital investment,” the announcement stated. 

Following the Pentagon’s announcement, Anduril stated in its own release that its portion of the framework agreements covers procurement and delivery of a minimum of 1,000 surface-launched Barracuda-500M rounds per year for three years, with the first tranche of deliveries to take place in the first half of 2027.

Leidos also said in a statement today that the company will provide an “initial” 3,000 LCCMs which are modeled after the company’s  AGM-190A Small Cruise Missile, but the new munitions are “approximately twice the size,” the company stated. “Full system design, development and test will result in production beginning in 2027,” the release added.

In addition to the four companies providing LCCMs, the DoD announced a “parallel” agreement with defense startup Castelion which established a plan to award a two-year contract for a minimum of 500 Blackbeard long-range hypersonic strike weapons, with an option to extend for up to five years. DoD said in its announcement today the contract was to “further encourage Castelion’s self-funded facility expansion.”

Back in October, the company announced it won “multiple awards” for the Blackbeard to be used on Army and Navy platforms, though at the time, execs from the company were tight-lipped about what systems the platform would be integrated into. 

The establishment of the LCCMP comes after the DoD asked for an 188 percent bump in missile procurement in its fiscal 2027 budget request. At the same time, such munitions are heavily desired given the ongoing conflict with Iran. 

Today’s announcement is the latest in a series of multiyear framework deals for munitions announced since the beginning of the year, however none have been turned into finalized contracts as of early last month.