Pentagon Announces Framework Agreements for Over 10,000 Containerized Missiles

The Pentagon announced on May 13, 2026, framework agreements with Anduril, CoAspire, Leidos, and Zone 5 for the Low-Cost Containerized Munitions program, positioning the Department of Defense to acquire over 10,000 containerized missiles over three years starting in 2027. The fiscal 2027 budget funds over $26 billion for multi-year munitions procurement contracts, driven by high demand from the ongoing war in Iran.

Containerized missile framework agreements

• ▪The USS Savannah conducted a live-fire demonstration on October 24, 2023, using a containerized launching system that fired a Standard Missile-6 from the ship at a designated target
• ▪The Pentagon is set to announce on May 13, 2026, framework agreements with Anduril, CoAspire, Leidos, and Zone 5 for the Low-Cost Containerized Munitions (LCCM) program
• ▪The assessment phase of the Low-Cost Containerized Munitions (LCCM) program will involve purchasing test missiles from Anduril, CoAspire, Leidos, and Zone 5 starting in June 2026
• ▪The Pentagon's Low-Cost Containerized Munitions (LCCM) program framework agreements position the Pentagon to potentially acquire over 10,000 low-cost, containerized missiles over three years starting in 2027
• ▪The Pentagon's Low-Cost Containerized Munitions (LCCM) program framework agreements establish the terms for future firm-fixed-price production contracts

Castelion Blackbeard hypersonic missiles

• ▪Blackbeard missiles are Castelion's first hypersonic strike weapon
• ▪The Pentagon has a separate agreement with Castelion that lays out a plan to award a two-year contract for a minimum annual purchase of 500 Blackbeard missiles once Castelion achieves testing and validation
• ▪The Pentagon is seeking authorizations and appropriations to purchase over 12,000 Blackbeard missiles over five years

Defense industrial base expansion

• ▪Michael Duffey, under secretary of defense for acquisition and sustainment, stated that the Low-Cost Containerized Munitions (LCCM) program framework agreements show how the U.S. is moving beyond traditional prime contractors to expand the industrial base
• ▪Emil Michael, under secretary of defense for research and engineering, stated that the Low-Cost Containerized Munitions (LCCM) program framework agreements commit the firms to on-time, on-cost delivery

Munitions procurement funding

• ▪Michael Duffey is the Pentagon's chief weapons buyer
• ▪The Pentagon is ramping up its requests from Congress for funding for munitions
• ▪General Dan Caine, chairman of the Joint Chiefs of Staff, stated in written testimony that the Pentagon's fiscal 2027 budget would fund over $26 billion for multi-year procurement contracts for critical munitions

Iran war demand drivers

• ▪Munitions are in high demand due to the ongoing war in Iran
• ▪There is an ongoing war in Iran as of May 2026