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Pentagon Signs Framework Deals for Cheap, Mass-Produced Cruise Missiles

The agreements are meant to enable large-scale low-cost missile production pending testing, qualification, congressional authorization

Overview

  • The Defense Department on July 15 reached seven-year framework agreements with Anduril, CoAspire and Zone 5 that set terms for testing, qualification and potential multiyear purchases.
  • Those framework deals do not buy missiles today and require successful weapon testing and congressional approval before any production orders or payments are made.
  • Service and company projections cited in coverage envision roughly 28,000 missiles over five years at about $12.6 billion and production capacity up to about 8,000 rounds per year, with a target unit cost near $218,000 versus more than $1.3 million for legacy JASSM rounds.
  • Vendors plan production ramps and factory investments using techniques such as additive manufacturing, with CoAspire highlighted as the sole small business on the list and Anduril saying deliveries could start in 2027 if milestones are met; Zone 5’s U.S. arm was acquired by Kongsberg in June.
  • Officials say the program is designed to broaden the U.S. defense industrial base and create stable demand that could lower per-round prices, speed fielding of large inventories and change how commanders weigh massed lower-cost strikes versus fewer high-cost munitions.