US strikes $58.6 billion Patriot missile deal amid rising stockpile concerns
LMT•Pentagon pushes contractors to accelerate missile output
Pentagon negotiators are pressing contractors to move much faster, with tentative production agreements struck earlier this year at the center of efforts to increase missile output. The administration of President Donald Trump has also steadily increased pressure on defense contractors to prioritize production over shareholder payouts. Trump signed an executive order in January to identify contractors deemed to be underperforming on government contracts while continuing to distribute profits to shareholders.
Industry executives have welcomed the production agreements, but said Congress must first appropriate funding before companies can invest more heavily in components and production capacity.
Exact terms and delivery dates for many Pentagon munitions deals are still under negotiation.
A similar framework deal had been struck with Raytheon's parent company RTX to boost production of Tomahawk cruise missiles from the current rate of about 60 per year for the U.S. to eventually 1,000 units annually.
