The US Department of War (DoW) has signed a new framework agreement with Anduril Industries to expand the nation’s production of affordable stand-off munitions.
The initiative centres on pallet- and lug-launched variants of the Barracuda-500 air vehicle, with plans to ramp up deliveries beginning in 2027 and continue at high production volumes for seven years.
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Under the two-phase agreement, the DoW intends to purchase and deploy up to 8,000 Barracuda-500 systems per year, with these figures divided among different launch variants and their manufacturers.
According to Anduril, the framework is designed to accelerate the transition from prototyping to large-scale production for these systems, ultimately bolstering US and allied stockpiles of long-range strike munitions.
This announcement builds on previous contracts under the Department’s Ground-Launched Low-Cost Containerised Munition programme, where Anduril is expected to deliver 1,000 surface-launched Barracuda-500M units annually over three years.
The move is part of a broader government push to diversify and expand the US munitions industrial base, leveraging rapid procurement and production models with non-traditional defence suppliers.
The Barracuda-500 programme traces back to the US Air Force Family of Affordable Mass Missiles (FAMM) initiative that began in 2024.
FAMM seeks to develop and field modular, cost-effective long-range strike weapons in substantial quantities to support high-intensity conflict requirements.
Both lug-launched (FAMM-L) and pallet-launched (FAMM-P) Barracuda-500 variants have been undergoing development and testing with Anduril, which completed initial pallet-launched flight trials in September 2024.
Further development continues, with the first ground and flight trials for the lug-launched Barracuda-500M scheduled in the coming months.
According to Anduril, the Barracuda-500 family is designed with over 90% shared components across launch variants, all of which can be built on shared production lines.
To meet production targets, Anduril has invested over $40m in a dedicated manufacturing plant in Southern California, which opened earlier this year.
Production will transition later in 2026 to a new five million square foot facility in Pickaway County, Ohio, to enable further increases in output. Anduril stated it aims to reach production levels in the “high single-digit thousands” of Barracuda-500s per year by the end of this year.
The Department of War describes this approach as directly aligned with its focus on strengthening munitions inventories and sustaining the United States’ “Arsenal of Freedom.”
The new procurement model seeks to deliver affordability and surge capacity for crucial strike systems.
The first deliveries under the framework agreement are expected to begin in 2027, with annual production and deliveries continuing through at least 2033.
In a related development, the DoW has also added CoAspire as a participant in a separate framework agreement supporting the FAMM programme.
CoAspire is contributing its Rapidly Adaptable Affordable Cruise Missile (RAACM) as part of the initiative.
The RAACM missile family is being developed in multiple sizes, allowing for deployment from air, surface, and ground platforms.
According to CoAspire, the baseline variant is capable of flying hundreds of miles, achieved in part through its additively manufactured fuselage that maximises internal fuel capacity.
Programme plans call for the delivery of 28,000 FAMM missiles across the first five years, beginning in fiscal year 2027, pending the necessary congressional approvals and funding allocations.
