SMEs to supply US with low-cost missiles

The US Department of War (DoW) has struck several new framework agreements with SMEs and primes to supply the US military with affordable missiles as the country seeks to strengthen its defence capabilities.  

These agreements, announced by the DoW on 13 May, form the foundation of the Low-Cost Containerised Missiles (LCCM) assessment programme. 

This will see SME CoAspire, a Virginia-based missile manufacturer, compete with primes Anduril and Leidos as part of the assessment programme. 

Zone 5, a small California-based defence manufacturer that is 90% owned by Kongsberg, will also take part. 

As part of the LCCM programme, the DoW will procure test missiles from all four companies starting in June 2026. A “fast-paced experimentation and assessment campaign” will then take place.   

Overall, the department aims to establish terms for future firm-fixed-price production contracts, laying the groundwork for the procurement of over 10,000 low-cost missiles starting in 2027.  

According to the DoW, the programme is designed to match the pace of commercial industry by creating “a pathway for rapid and repeatable production of high-volume, lethal strike capabilities.” 

"We are moving beyond the traditional prime contractors to expand our industrial base, accelerating testing timelines, and sending a clear, long-term demand signal to innovative new entrants," Michael Duffey, US Under Secretary of War for Acquisition and Sustainment, said. 

Concurrently, the DoW has also awarded a two-year procurement contract to Castelion, a US-based hypersonic missile startup. This agreement will see the delivery of a minimum of 500 of the company’s Blackbeard missiles annually, following testing and validation. 

The DoW says that it is also seeking further authorisation to purchase over 12,000 Blackbeard missiles over a five-year period.