Operation Epic Fury, the aerial campaign conducted against Iran that began on February 28, has significantly depleted U.S. military ordnance stockpiles, particularly high-end precision missiles. According to data from the Center for Strategic and International Studies (CSIS), more than 850 Tomahawk missiles were fired in just the first four weeks of the conflict.
Moreover, at least 45% of the U.S. military’s stockpiles of Precision Strike Missiles (PrSM) were used, along with roughly half of the THAAD missile supplies. Analysts estimate that replenishment could take 1 to 4 years.
That has set off alarm bells with lawmakers and other U.S. officials. On Thursday, the Department of Defense (DoD) announced that it had reached a new framework agreement with multiple government contractors to address the issue and to “aggressively expand the United States military’s strike capabilities.”
New Entrants And Commercial Innovators
The Pentagon has reached agreements with Anduril, CoAspire, Leidos, and Zone 5 to supply ordnance via the Low-Cost Containerized Missiles (LCCM) program. A parallel agreement has also been concluded with Castelion to advance an initiative to scale low-cost hypersonic solutions.
“These agreements will rapidly field effective and affordable kinetic mass for the Joint Force at scale, acting directly on the mandate from President Trump and Secretary Hegseth to strengthen America’s military with an unequivocally lethal Arsenal of Freedom,” the DoD explained.
The LCCM program could provide the U.S. military with lower-cost ordnance purchased in bulk and fielded quickly. The missiles could be fired from mobile launch systems, which could also allow them to be deployed to global hotspots as needed.
The LCCM framework calls for “fast-paced experimentation” that will lead to a Military Utility Assessment by the sponsoring Service Components. It will allow the DoD to procure more than 10,000 low-cost cruise missiles beginning in 2027 and delivered by 2030. It could also create a new pathway for “rapid and repeatable production of high-volume, lethal strike capabilities,” the Pentagon added. It will include firm fixed material-unit costs for the production lots from 2027 to 2029.
New Model of Commercial Partnership
What is noteworthy about this program is that the new vendors will reach production scale without direct Pentagon investment. Instead, it is part of a new model of commercial partnership that will reward speed, innovation, and private sector capital investment, according to the DoD.
In other words, companies will be rewarded for their efforts.
“Once Castelion achieves testing and validation, the Department will award a two-year multi-year procurement contract for a minimum of 500 Blackbeard missiles annually, with options to extend for up to five years,” the Pentagon stated. “To further encourage Castelion’s self-funded facility expansion, the Department is actively seeking the necessary authorizations and appropriations to purchase over 12,000 Blackbeard missiles over five years.”
Last year, Castelion was awarded multiple contracts from the U.S. Army and the U.S. Navy for its Blackbeard, aiming to achieve operational capability by 2027. The contracts were part of a previously announced strategy for low-cost, rapid deployment hypersonic weapons.
“We will deliver affordable mass for our warfighters at unprecedented speed,” said Under Secretary of War for Research and Engineering Emil Michael. “In concert with establishing a clear demand signal, these Framework Agreements commit American industry to on-time, on-cost delivery and investment in R&D and facilities. This commercial style of partnership is fully aligned with Secretary Hegseth’s Acquisition Transformation Strategy.”
The experimentation and assessment campaign for LCCM is being led by the Office of the Under Secretary of Defense for Research and Engineering, with the Army Program Acquisition Executive Fires serving as the transition partner and acquisition lead for procurement.
Assessment Phase Groundwork Laid
The Pentagon is kick-starting the program by procuring test missiles from all four LCCM companies beginning in June 2026, which will lay the groundwork for the program’s assessment phase.
“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,” added Under Secretary of Defense for Acquisition and Sustainment Michael Duffey.
The agreements with the four defense contractors were also the result of close coordination with the United States Air Force Program Acquisition Executive, Weapons; the Test Resource Management Center; and multiple components across the War Department, including the Office of the Under Secretary of War for Acquisition and Sustainment, the Pentagon announced.
Low-Cost Containerized Missile Overview
The key programs as of May 2026 include:
- Anduril Barracuda-500M – a low-cost, surface-launched cruise missile that was developed for high-volume production. It was designed for long-range precision fires and stand-off strike missions, Military.com explained. It can carry a 100-pound payload and has a range of more than 500 nautical miles. It can be fired from a standard 20-foot ISO container loaded with up to 16 all-up rounds.
- CoAspire GHOST – A long-range, containerized ground-launch surface-launched cruise missile that is being accelerated for rapid deployment to support the needs of U.S. and allied forces. It is a ground-launched missile that uses a solid rocket motor to boost it out of its container before the turbojet engine engages for flight.
- Leidos Low-cost Containerized Munition (LCCM) – A ground-launched, large cruise missile based on the company’s AGM-190A Small Cruise Missile. At approximately twice the size of the AGM-190A, the LCCM offers increased mission effectiveness and fuel capacity to maximize range. According to the company, the DoD has ordered an initial 3,000 units to be produced in Alabama and Tennessee.
- Zone 5 Technologies – The exact ordnance hasn’t been announced, but reports indicate the firm is expected to adapt its existing “Rusty Dagger” missile technology to meet the LCCM requirements. The AGM-188A Rusty Dagger is a low-cost precision-guided air-launched stand-off munition now under development.
