The U.S. Department of Defense has signed a new $264.6 million contract with Dynetics Inc. to enhance its defense capabilities against rapidly evolving aerial threats. Announced on July 30, 2025, the deal is part of the U.S. Army’s Indirect Fire Protection Capability (IFPC) program, designed to counter indirect fire attacks.
The contract features a hybrid payment model combining fixed-price and cost-plus-fixed-fee structures. Initially, $127 million has been obligated from the fiscal year 2025 research, development, test, and evaluation budget. The work will be conducted in facilities located in Huntsville, Alabama; Dallastown, Pennsylvania; and Chanhassen, Minnesota, with project completion expected by July 2026. The contract is being managed by the Army Contracting Command at Redstone Arsenal.
The IFPC system is being developed to protect fixed and semi-fixed military sites from indirect aerial threats such as rockets, artillery, mortars (RAM), unmanned aerial vehicles (UAVs), and cruise missiles. Addressing the limitations of traditional defense systems in the face of saturation and asymmetric attacks, IFPC offers a crucial mid-tier air defense solution between short-range M-SHORAD and long-range Patriot systems.
Designed with a modular architecture, IFPC is fully compatible with the Army’s Integrated Battle Command System (IBCS). The system enables real-time integration of radar, sensors, interceptors, and command-and-control components. It supports multiple interceptors, including the Tamir missile used in the Iron Dome and a modified AIM-9X. Dynetics’ multi-purpose launcher enhances the system’s flexibility and interoperability with allied forces.
In November 2024, the U.S. Army had already announced a framework agreement for the initial production and lifecycle support of IFPC, which could total up to $4.1 billion. As part of that effort, a $204 million initial contract had been signed, with $99 million already disbursed.
The newly signed contract marks a continuation of this long-term investment. IFPC stands out as a mobile, flexible, and integrated system expected to play a central role in the Army’s future air and missile defense architecture. With this system, the U.S. aims not only to safeguard its own forces but also to shield its allies from the growing drone and RAM threats of modern warfare.
