Pentagon signs framework deals with three firms to mass-produce affordable cruise missiles

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The Pentagon has announced framework agreements for new multiyear deals with three companies to mass-produce more affordable, less exquisite air-to-ground missiles for the Air Force. The initiative is part of a broader strategy to deliver cheaper firepower in future conflicts.

Announced July 15, the agreements aim to stabilize the department’s demand signal to industry and ensure a steady stream of missile production.

Production Targets

Once production ramps up, the Pentagon expects to receive a total of 8,000 missiles annually from its three selected vendors:

• Anduril – Barracuda
• CoAspire – Rapidly Adaptable Affordable Cruise Missile (RAACM)
• Zone 5 Technologies – AGM-188 Rusty Dagger

Official Statements

“The Arsenal of Freedom of the 21st Century requires doing business differently,” said Michael P. Duffey, Undersecretary of Defense for Acquisition and Sustainment. “Today’s announcement showcases the Acquisition Transformation Strategy in action, expanding the defense industrial base, fielding capabilities faster, and attracting private investment to fund innovation and increase manufacturing output.”

Congressional Authorization and Future Plans

Congress authorized the Defense Department to award five-year production contracts for the FAMM (Future Affordable Missile) program as part of the fiscal 2026 National Defense Authorization Act. In its release, the department stated it is seeking seven-year authorization in the fiscal 2027 bill.

The Air Force is currently focusing on two variants:

• FAMM-Lugged – for fighter aircraft
• FAMM-Palletized – for airlift aircraft

Both variants have ranges of 250 to 500 miles. Efforts are also underway to extend the range of these affordable munitions under a separate initiative known as FAMM-Beyond Adversary Reach.

Related Army Program

Anduril, CoAspire, and Zone 5—along with Leidos—were previously selected for an Army program called the Low-Cost Containerized Missile Program, which focuses on ground-launched missiles for defeating aerial threats. The missiles being delivered are largely similar to those in the FAMM program.

Company Perspectives

Anduril (California):

“Barracuda-500 is specifically designed to expand the United States’ stand-off strike capability,” according to an Anduril release. “By augmenting existing critical munitions inventories with a more affordable, producible, and flexible option, Anduril is enhancing America’s arsenal of munitions, ensuring that we have the capability required to deter our adversaries.”

CoAspire (Virginia):

“The inclusion of CoAspire in this groundbreaking FAMM program multiyear authority underscores CoAspire’s ability to revolutionize our country’s strike capabilities, offering a long-range solution that can be deployed across multiple platforms,” said Doug Denneny, CoAspire CEO and founder.

Zone 5 Technologies (U.S. office in California; acquired by Norwegian company Kongsberg in June):

“Modern conflict has made one thing clear—the ability to rapidly scale production without sacrificing capability is critically important for air superiority,” said Thomas Akers, CEO and CTO for Zone 5. “Rusty Dagger is built to deliver affordable, adaptable, highly survivable, incredibly lethal and rapidly deployable weapons that give the U.S. and our allies the ability to outpace and overwhelm evolving threats without being constrained by cost or production limitations.”

Budget Projections

In its 2027 budget request, the Air Force is targeting $355 million for the procurement of 1,000 FAMM missiles, according to budget documents. Projections show plans to acquire 28,000 FAMM missiles over the next five years, with a total cost of $12.6 billion:

| Fiscal Year | Funding | Missiles | |-------------|---------|----------| | 2028 | $1.85 billion | 5,300 | | 2029 | $2.3 billion | 5,920 | | 2030 | $4.03 billion | 7,700 | | 2031 | $4.13 billion | 7,990 |

Future Capabilities: FAMM-Beyond Adversary Reach

While FAMM-P and FAMM-L are the current focus, the Air Force aims to push the technology further while keeping costs relatively low.

The Air Force Life Cycle Management Center posted an April 20 notice seeking industry input on an affordable cruise missile capable of flying more than 1,200 miles and striking slow-moving ships. Key requirements include:

• Minimum speed of 537 miles per hour
• Ability to receive midcourse navigation updates
• Production capacity of 1,000 to 2,000 missiles annually

Air & Space Forces Magazine Pentagon Editor Chris Gordon contributed to this article.

Audio of this article is brought to you by the Air & Space Forces Association, honoring and supporting our Airmen, Guardians, and their families. Find out more at afa.org.