New DPA investments target SRM nozzles and insulation as the Department of War moves to strengthen domestic munitions manufacturing.
The Department of War has announced two new Defense Production Act investments totaling $32.7 million to expand the U.S. solid rocket motor industrial base.The funding targets critical production bottlenecks tied to rising demand for missiles and propellant-based weapons.
The department approved the investments on September 30, 2025. It delayed the public announcement due to the recent government shutdown.The funding falls under the Defense Production Act Title III authority.The awards go to Systima Technologies Inc. in Mukilteo, Washington, and R.E. Darling Co., Inc. in Tucson, Arizona.Both companies support key components used in solid rocket motors, commonly known as SRMs.Officials framed the move as part of a broader push to strengthen domestic munitions manufacturing and reduce supply chain risk.Defense officials say demand for propellant-based weaponry has surged in recent years. At the same time, the supplier base for SRM components has remained narrow.That imbalance has created production delays.“The surge in demand for propellant-based weaponry, coupled with a narrow supplier base, has created a bottleneck in SRM production,” said Under Secretary of War for Acquisition and Sustainment Michael Duffey.“With these strategic investments, we are fortifying our national security by expanding critical nodes of the SRM supply chain to accelerate munitions manufacturing.”The Department of War says SRMs play a central role in missile systems across the force.Any disruption in component supply can ripple across multiple weapons programs.Officials view Title III investments as one of the fastest ways to expand industrial capacity without waiting for new suppliers to emerge.Where the money goesOf the $32.7 million total, $5.0 million will go to Systima Technologies Inc. Systima operates as part of Karman Space & Defense and focuses on advanced aerospace components.The investment builds on Systima’s recent capital expansion strategy.The company will add a dedicated SRM nozzle production line for a major production program. It will also develop an optimized production cell for complex nozzle designs.The remaining $27.7 million will go to R.E. Darling Co., Inc., also known as REDAR.The funding will expand and modernize REDAR’s manufacturing capacity for SRM case insulation materials.Internal insulation protects solid rocket motors from extreme heat and erosion. Defense officials consider it a critical component for performance and reliability.The Department of War says the REDAR investment offers a fast route to increasing insulation capacity. It also aims to improve resiliency and competition across the SRM market.Bigger industrial pushThe latest awards bring the total number of recent SRM-focused DPA Title III investments to eight. Combined funding under that effort now stands at $120.0 million.The projects fall under a Defense Industrial Base Consortium Other Transaction Agreement solicitation.Officials say the framework helps move funding faster than traditional contracts.These two awards also form part of a larger spending picture. In fiscal year 2025, the DPA Purchases Office made 21 investments totaling $939.7 million.Recipient cost shares reached $88.0 million during the same period.The Manufacturing Capability Expansion and Investment Prioritization directorate oversees the DPA Purchases Office.Officials say future investments will continue targeting fragile points across the defense supply chain.For now, the department sees SRM production as one of the most urgent pressure points to address.
DPA Title III Hypersonic Weapons Missile Production Solid Rocket Motors SRM U.S. Defense Industry
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