The business of defense, October 30

The State Department approved a possible Foreign Military Sale to Ukraine estimated at $2.1 billion. Lockheed Martin would be the principal contractor under the proposal, announced in a congressional notification dated Oct. 30, 2026.¹

Estimated total cost$2.1 billioncontingent

The estimated total cost is $2.1 billion

Principal contractorLockheed Martinplanned

The principal contractor will be Lockheed Martin

Financingdonations from Canada, Germany and Norwayplanned

Ukraine will pay for this purchase with donations from Canada, Germany, and Norway via the JUMPSTART program and national funds, financed by the European Union’s Ukraine Support Loan.

Non-major defense equipment items include spare parts and logistics and program support

Source: U.S. Department of State. As of October 30, 2026.

Sources

• www.state.gov ↗

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Ukraine would pay with donations from Canada, Germany and Norway through the JUMPSTART program, plus national funds financed by the European Union’s Ukraine Support Loan. No U.S. funds are involved in the proposed sale.¹

Ukraine requested 500 PATRIOT Advanced Capability-3 Missile Segment Enhancement missiles. The package also includes spare parts and related logistics and program support, so the estimated total covers more than the missiles themselves.¹

Lockheed Martin is expected to contribute $423 million to the Army’s Future Interceptor project under an agreement announced Oct. 29, DefenseScoop reported. The government would provide about $660 million under the cost-sharing arrangement, with total project value estimated to exceed $1 billion, according to an Army release cited by the outlet.¹

Lockheed$423 millionplanned

expected to contribute $423 million

the governmentabout $660 millionplanned

Under a cost-sharing arrangement

Future development and production decisions will be informed by prototype performance, requirements, resources and acquisition processes

Reported by DefenseScoop

Sources

• defensescoop.com ↗

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The Army selected Lockheed to further develop a new missile interceptor through an Other Transaction agreement. The work covers prototype development and testing and evaluation to assess performance against established operational requirements.¹

Lockheed previously offered its PAC-3 Edge system for the program. Lockheed planned to begin testing in 2027, with the aim of having it ready for deployment by 2031. The company describes PAC-3 Edge as designed to integrate with the Integrated Battle Command System, the M903 launcher, containerized launchers and HIMARS Flex.¹

A continuing resolution could delay the Army’s first low-rate initial production (LRIP) contract for the MV-75 Cheyenne II, Textron executives told investors Oct. 29, Breaking Defense reported. Chief Financial Officer David Rosenberg said Textron had expected the award in the fourth quarter into the first quarter of next year.¹

$60 million to $110 millionPrevious-quarter estimate

$110 million to $150 millionIf the award slips further

The higher estimate depends on a further delay in the first low-rate initial production award.

Reported by Breaking Defense, Oct. 29, 2026. As of Oct. 30, 2026.

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A delay could add to the financial hit Bell Textron already expects. Last quarter, the company estimated that funding delays would cost $60 million to $110 million. A further delay in the production award could raise that estimate to $110 million to $150 million, Rosenberg said.¹

The Army exhausted nearly all its available fiscal 2026 MV-75 funding in July, according to Textron’s quarterly filing as described by Breaking Defense. The company continued work while reducing spending to manage the shortfall.¹

TOTE Services announced on Oct. 30 that it selected Hanwha Defense USA (HDUSA) to build a Medium Landing Ship (LSM) for the Navy and Marine Corps. The award covers one vessel valued at $269 million at Hanwha Philly Shipyard. It includes options for three additional vessels.¹

TOTE says HDUSA is the first shipbuilder selected through the RFP, based on competitive pricing and acceptance of TOTE's subcontract terms

$269 million

The award covers construction of one LSM valued at $269 million at Hanwha Philly Shipyard, with options for three additional vessels

HDUSA says the selection is its first contract to build ships for the U.S. Navy

Source: prnewswire.com. As of Oct. 30, 2026.

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• www.prnewswire.com ↗
• www.prnewswire.com ↗

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HDUSA calls the selection its first contract to build ships for the Navy.² TOTE holds the prime contract and awards and manages the shipyard subcontracts directly.³

In July, TOTE announced a contract valued at $2.2 billion from the Portfolio Acquisition Executive for Maritime to serve as vessel construction manager for up to eight Medium Landing Ships.³ HDUSA says the Philadelphia yard has already built and delivered four National Security Multi-Mission Vessels under the same management model with TOTE.²

TOTE issued a competitive request for proposals to qualified U.S. shipyards in July. It says HDUSA's selection rested on competitive pricing and acceptance of TOTE's subcontract terms. Contract discussions continue with Bollinger Shipyards and Fincantieri Marinette Marine, both directed shipyards under TOTE's contract that it expects to help build the fleet.¹

The Department of War disclosed the Military Intelligence Program (MIP) appropriated top line. The fiscal 2026 total was $30.9 billion.¹

$30.9 billion

The FY2026 MIP appropriated total was $30.9 billion

No other MIP budget figures or program details will be released, as they remain classified for national security reasons.

Department of War

Sources

• www.war.gov ↗

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The disclosure gives no breakdown by component, mission or program. The department says it will release no other MIP budget figures or program details because they remain classified for national security reasons.¹

The Department of War plans to pursue public-private partnerships to help cover the cost of FORTRESS America, its homeland base-hardening initiative, Breaking Defense reported Oct. 30.¹

public-private partnershipsplanning to pursueplanned

the Pentagon is planning to pursue public-private partnerships to offset the cost of the FORTRESS America homeland base-hardening initiative

commercial offtakeprioritization schemeplanned

the services are working on a prioritization scheme for portions of the effort that could benefit from commercial offtake

Reported by Breaking Defense

Sources

• breakingdefense.com ↗

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Dale Marks, the Pentagon’s assistant secretary for energy, installations and environment, told the outlet the services are developing a way to prioritize work that could benefit from commercial offtake. He spoke on the sidelines of the Installation Innovation conference in Tampa, Florida, this week.¹

FORTRESS America includes strengthening strategic reserves such as ammunition and spare parts and better dispersing them around the country. Breaking Defense identified factories and depots as potential public-private opportunities within that effort; in the interview, Marks did not specify which areas or projects might be suited to partnerships.¹

Marks said his work with other senior leaders focuses on identifying priorities and ways to drive down costs, rather than mandating a completion date for every existing U.S. installation to comply with FORTRESS America.¹

MDA Space announced an agreement with Thales Alenia Space on Oct. 30 to begin antenna work for the EU's IRIS² secure-connectivity program. Its scope covers MDA AURORA broadband digital phased array antennas and a digital antenna controller for 66 Layer 1 satellites planned for low Earth orbit.¹

authorization to proceed agreementmore than $100M

The authorization to proceed agreement is valued at more than $100M (currency not specified in release)

MDA Space's full scope of worksubject to contract finalizationcontingent

The definitive contract for MDA Space's full scope of work is subject to contract finalization.

MDA Space release, Oct. 30, 2026

Sources

• www.prnewswire.com ↗

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The authorization-to-proceed agreement allows work to begin before finalization of the definitive contract for MDA's full scope. MDA values the authorization at more than $100 million, without specifying the currency, and says it will enter backlog in the fourth quarter of fiscal 2026.¹

MDA Space Chief Executive Mike Greenley said the agreement covers the first set of Layer 1 satellites, planned for launch in 2029. MDA says its AURORA system and associated subsystems are engineered for high-volume production and are designed, manufactured and tested at its Montréal facility.¹

The Navy’s New Attack Submarine Program Office (PMS 351) is seeking industry interest in SSN(X) concept design ahead of a planned competition.¹

The formal AOI notice is under Other Transaction authority and will launch as early as next week to identify qualified, interested vendors

The forthcoming opportunity will solicit competitive industry concepts to advance a novel SSN(X) System Arrangement Concept Design and reduce integration technical risk within a Whole-Ship Submarine Concept Design

Respondents must identify whether they are a non-traditional or traditional defense contractor

Source: sam.gov. As of Oct. 30, 2026.

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• sam.gov ↗

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The Navy’s Oct. 30 pre-solicitation says the formal Area of Interest notice could launch as early as next week under Other Transaction authority. The forthcoming opportunity will seek competitive industry concepts to advance a novel SSN(X) System Arrangement Concept Design.¹

The Navy aims to reduce the technical risk of integrating that arrangement into the submarine’s overall design, described as a hydrostatically balanced Whole-Ship Submarine Concept Design. The scope calls for using “Super Intelligence,” a term the notice does not define.¹

Responses are due at midnight Eastern Time at the start of Nov. 6, 2026.² The request carries no government commitment, and respondents will not be reimbursed for submitted information.¹

Overseas companies winning qualifying UK defense contracts will have to deliver domestic benefits, potentially matching the contract’s value, under an offsets policy published Oct. 30. Those commitments can include opening or expanding factories in the UK.¹

Contractsover £50 millioncontingent

Contracts worth over £50 million will be considered for offsets. The contractors will be required to deliver such benefits to the UK that could reach the same value as the contract

Offset PolicyApril 2027planned

will apply to a select number of procurements from April 2027, with suppliers notified early and clearly where offset requirements will apply

The approach will be applied on a case-by-case basis by the MOD.

Source: UK Ministry of Defence and HM Treasury. As of 30 October 2026.

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• www.gov.uk ↗

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The Ministry of Defence will apply the policy case by case to a select number of procurements from April 2027, notifying suppliers where requirements apply. Contracts worth more than £50 million will be considered for offsets.¹

The government’s example is a £100 million contract that could carry up to £100 million in jobs, facilities or skills training in the UK.¹

Breaking Defense reported that the Skynet 6 Wideband Satellite System competition between Airbus and Lockheed Martin is likely to provide an early test. The outlet cited a 2023 solicitation notice valuing the procurement at £1.5 billion.²

The Air Force intends to award Boeing a sole-source production contract for 15 test instrumentation kits used in Air Launched Cruise Missile (ALCM) test flights.¹ The presolicitation was posted Oct. 30, 2026.²

base production lot15 CATIKsplanned

Current acquisition strategy is a definitive firm-fixed-price contract for a base production lot of 15 CATIKs

options15 flight termination batteries and 15 instrumentation batteriesplanned

with options for 15 flight termination batteries and 15 instrumentation batteries

Delivery is expected to complete within 18 months after award.

Funds are not presently available for this effort. No award will be made until funds are available.

Source: SAM.gov presolicitation. As of Oct. 30, 2026.

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• sam.gov ↗

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The kits process multiple subsystem inputs, including flight computer, engine, navigation, range safety, warhead and instrumentation signals, and route output to an embedded encryption device for secure telemetry. The production effort covers procurement, assembly, testing, qualification and delivery of kit shipsets, line and shop replaceable units, and flight termination system components.¹

The Air Force Nuclear Weapons Center's Missile Sustainment Division at Tinker Air Force Base, Oklahoma, manages the effort. The current acquisition strategy calls for a definitive firm-fixed-price contract, with options for 15 flight termination batteries and 15 instrumentation batteries alongside the base kit lot.¹

The Air Force expects the solicitation on or before Nov. 16, 2026, but reserves the right not to solicit the requirement or to cancel after issuance.¹

A US Indo-Pacific Command official cited Japanese partners’ first use of the Maven Smart System as an example of partners using shared warfighting applications, Breaking Defense reported.¹

Maven Smart Systemplanning and targetingStated scope

an artificial intelligence-enabled platform used for planning and targeting, which is embedded into the mission network

Breaking Defense describes the PACOM Mission Network, as officials called it, as a system that lets US forces and partners share data and mission planning tools securely across classification to jointly conduct operations or prosecute targets

Reported by Breaking Defense, October 30, 2026

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• breakingdefense.com ↗

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Maven is embedded in the PACOM Mission Network, which lets US forces and partners share data and mission planning tools securely across classification to jointly conduct operations or prosecute targets, the outlet reported.¹

Brig. Gen. Michael Smith, the command’s director for command, control, communications, computers and cyber, described the Japanese use at the TechNet Indo-Pacific Conference on Oct. 29. Japanese users are contributing to joint strikes through Maven, he said. Breaking Defense did not report whether the Japanese use came during exercises or operations.¹

Lt. Gen. George Rowell, the command’s deputy commander, said the mission network was used in several exercises over the past year, without specifying how many.¹

The Air Force is surveying industry capability for a planned Simulator Common Architecture Requirements and Standards contract, known as SCARS. It posted the sources-sought notice Oct. 29, 2026.¹

Air Forceunrestricted competition or a small business set-asideplanned

The sources-sought results will help the Air Force decide between unrestricted competition and a small business set-aside for a C-Type contract to fulfill SCARS requirements

Responses are due no later than 3:00 PM EST, 10 December 2026 (a Thursday)

Source: SAM.gov sources-sought notice

Sources

• sam.gov ↗

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The responses will help the Air Force decide whether to open the SCARS solicitation to unrestricted competition or reserve it for small businesses. The proposed scope combines governance of architecture standards with security operations and enterprise logistics and fielding in one contractor requirement set.¹

The Air Force anticipates a contract start in calendar 2030. A transition of up to six months would lead to full operational performance in calendar 2031. The proposed structure includes a four-year base period and six one-year options. Those dates and structures are notional and subject to change based on market research and acquisition strategy approval.¹

The Army is seeking a commercial partnership to support development and production of lethal energetic payloads for small unmanned aircraft systems at Pine Bluff Arsenal. Army Materiel Command posted the request for white papers on Oct. 30, 2026, as market research for a potential public-private partnership.¹

private equity or internal corporate capital100%

An industry partner must use private equity or internal corporate capital to fund 100% of modernization CapEx for targeted buildings

commercial requirementsportion of capacityplanned

A partner would be granted a facilities-use contract guaranteeing a portion of capacity for its own commercial requirements, amount to be negotiated

war or national emergencymay suspend or terminate commercial activitycontingent

The Government may suspend or terminate commercial activity or require priority performance for military work during war or national emergency

The Government is not obligated to enter an arrangement

Source: Army Materiel Command, SAM.gov. As of Oct. 30, 2026.

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• sam.gov ↗

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Under the proposed terms, a partner would fund all modernization capital costs for the targeted buildings using private equity or internal corporate capital. In exchange, a facilities-use contract would guarantee a portion of the modernized or new lines' capacity for the partner's commercial requirements, with the amount to be negotiated.¹

Permanent upgrades would become government property upon installation, while the contractor would retain operational use for the agreement's duration. The notice is not a request for proposals, and the government has no obligation to enter an agreement.¹

Pine Bluff can provide approximately 100,000 square feet of storage and production space. The arsenal wants flexible lines accommodating different explosives and payload sizes; the proposed partnership also covers electronic safe and arming devices.¹

A possible build-to-operate arrangement would let the partner operate capabilities until it recovers its initial capital investment and earns an agreed profit. Operational control would then transfer to the government's organic industrial base.¹

White papers are due Dec. 14, 2026.¹ Responses must arrive by 4 p.m. CST that day. The most highly assessed respondents would be invited to a mandatory site visit.¹