The Department of War announced framework agreements with BAE Systems and Honeywell Aerospace that will sharply increase production of critical components for the nation’s missile defense and munitions programs.
Under one pact, BAE Systems will quadruple the output of seekers for the Terminal High Altitude Area Defense interceptor. The deal follows a recent agreement with Lockheed Martin to quadruple THAAD interceptor production itself and is designed to strengthen the entire supply chain, not just prime contractors.
The arrangement gives BAE Systems the long-term stability needed to invest, expand, and hire, officials said. The manufacturing of the THAAD seekers will take place at the company’s facilities in Nashua, New Hampshire, and Endicott, New York, the company stated.
“Securing our supply chain is just as critical as our partnership with the prime contractors,” said Michael Duffey, under secretary of War for acquisition and sustainment. “This agreement with BAE Systems sends a clear, stable, long-term demand signal. We are providing the certainty our partners need to invest, expand, and hire. This is how we place the industrial base on a wartime footing.”
Tom Arseneault, president and CEO of BAE Systems, echoed that viewpoint.
“This new, multi-year agreement provides a long-term demand signal that gives us the confidence to further invest in expanding our capacity, and underscores the strength of industry’s collaboration with the Department of War,” he said. “We remain focused on rapidly delivering superior technology at scale to help our warfighters maintain a decisive advantage.”
A separate agreement with Honeywell Aerospace will surge the output of navigation systems, Honeywell Assure actuators, and electronic warfare solutions for the munitions stockpile. The pact unlocks a $500 million multi-year investment by Honeywell to modernize and expand its manufacturing capacity.
“Honeywell Aerospace is proud to embrace the challenge and meet this urgent need,” Jim Currier, president and CEO of Honeywell Aerospace, said in a news release. “Our commercial operating system enables us to invest in advanced technologies and manufacture at scale and speed, delivering a substantial and enduring benefit to the customer and taxpayers.”
“Our strategy is to provide the long-term demand signals that unlock private investment, and this half-billion-dollar commitment from Honeywell Aerospace demonstrates we are succeeding,” Duffey said. “Thanks to the leadership of President Trump and Secretary Hegseth, we are building the deep and dominant Arsenal of Freedom our nation requires by ensuring our entire industrial base can deliver at speed and scale.”
Both agreements stem from the department’s Acquisition Transformation Strategy and the work of the Munitions Acceleration Council. Officials said the deals answer President Donald Trump and Secretary of Defense Pete Hegseth’s call to build a resilient Arsenal of Freedom capable of outpacing any adversary.
