International Military Markets & Budgets - North America

RESTON, Va. -- The United States Army has awarded Leidos a $617 million contract to produce and deliver additional launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2). This latest agreement follows two previous awards totaling $356 million issued in July and September 2025. With this funding, the total value of production contracts for the mobile air defense system has reached approximately $1.2 billion.

The IFPC Inc 2 is a ground based system designed to intercept unmanned aerial vehicles and cruise missiles. It serves as a central component of the Army's layered air and missile defense strategy. The system is built on an open architecture, which allows it to integrate with existing command and control infrastructure while remaining compatible with standard military transport vehicles.

Leidos has committed to delivering more than 100 launchers under the current contract framework. This latest round of funding is intended to transition the program toward full rate production and includes provisions for continued research, development, and testing. The contract terms allow for potential follow-on orders through 2029.

According to program records, the company recently delivered the first launcher for initial operational test and evaluation two months ahead of the projected schedule. The IFPC Inc 2 is intended to provide a modular defense solution that can be updated as new effector technologies and threats emerge.

This investment reflects a shift in U.S. Army procurement toward mobile, scalable defenses capable of countering low cost drone swarms and sophisticated cruise missiles. By securing over $1 billion in contracts, the Army is signaling a commitment to moving away from static defense models in favor of plug and play systems that can be rapidly deployed and integrated into various combat environments.

Source: Forecast International
Associated URL: www.leidos.com

WASHINGTON - The U.S. Air Force is realigning its future aerial refueling strategy, pivoting near-term efforts away from developing a bespoke sixth-generation airframe to focus on supporting mission systems and interim acquisitions. As a short-term measure to keep production lines active while finalizing long-term plans, the service is finalizing a contract with Boeing to purchase 75 additional KC-46 Pegasus aircraft. This acquisition will supplement the Air Force's existing program of record of 188 tankers.

The strategic shift is reflected in the Air Force's FY27 budget request, which seeks to move funding from the Next Generation Air-refueling System (NGAS) program to a new initiative called Advanced Tanker Systems (ATS). The service is requesting $13 million in research and development funds for ATS to nail down critical mission capabilities, such as connectivity, electronic warfare, and defensive systems that are required for tankers to operate effectively in contested environments.

While the Air Force has not abandoned NGAS, the program faces uncertainty due to budget constraints and shifting requirements. An ongoing analysis of alternatives is evaluating various airframe designs, propulsion systems, and off-board capabilities, with officials noting that the future refueling fleet could ultimately emerge as a "family of systems" comprising multiple manned and unmanned aircraft.

Source: Defense Scoop
Associated URL: https://defensescoop.com/2026/04/21/air-force-shifts-sixth-gen-tanker-strategy-ngas-ats

WASHINGTON - The U.S. Navy plans to implement a one-year "strategic pause" in the procurement of Northrop Grumman’s AGM-88G Advanced Anti-Radiation Guided Missile-Extended Range (AARGM-ER). Newly released budget documents for FY27 show a request for only $24 million, leaving no funding available for new missile orders during that period. The Navy had previously funded the purchase of 172 units through FY25 and an additional 88 units this year.

The proposed freeze follows a March report from the office of test and evaluation, which noted that the AARGM-ER failed two out of three tests against representative land-based air defense targets last year. Despite the setback, Northrop Grumman stated it remains partnered with the Navy to field the capability, which the company describes as a critical weapon system for warfighters.

While the Navy intends to resume orders after the 2027 hiatus, officials have begun exploring future options. In February, the service issued a market survey for the Advanced Emission Suppression Missile, a longer-range alternative intended for production of up to 300 units per year.

Source: Aviation Week
Associated URL: https://aviationweek.com/defense/budget-policy-operations/us-navy-seeks-one-year-pause-aargm-er-orders