Army to Shift to Multiyear Deals for Patriot, GMLRS Missiles

The U.S. Army has received approval to transition existing procurement contracts for its Patriot Advanced Capability-3 Missile Segment Enhancement and Guided Multiple Launch Rocket System missiles into multiyear deals.

The move follows the White House’s support for increased munitions spending in its fiscal 2024 budget request, Breaking Defense reported.

The decision is also informed by the ongoing conflict in Ukraine, which highlights the critical importance of maintaining robust munition reserves and production lines.

Doug Bush, the Army’s head of acquisition, a speaker at the Potomac Officers Club’s upcoming Army summit and a past Wash100 awardee, confirmed the service had structured both contracts with the potential for conversion into multiyear agreements. He said the two-step structure represents a novel approach, designed to accelerate procurement while awaiting necessary congressional approvals.

The fiscal 2024 spending bill earmarks substantial funding for both GMLRS and Patriot missile lines with lawmakers stressing that multiyear contracts will improve readiness, stabilize the defense supply base and expand industrial capacity.  

The Army is not alone in pursuing the strategy as several Air Force and Navy munition lines are also slated for multiyear contracts, which were traditionally reserved for larger platforms such as ships and aircraft.