The Department of War announced today two September 30, 2025, Defense Production Act (DPA) Title III investments totaling $32.7 million to expand the solid rocket motor (SRM) industrial base. Announcement of these investments was delayed due to the government shutdown. The recipients are Systima Technologies Inc. (Systima), in Mukilteo, Washington, and R.E. Darling Co., Inc. (REDAR) in Tucson, Arizona. These investments support the Department of War's objectives to expand the munitions industrial base, bolster supply chain resiliency, and increase domestic production in strategic priority areas.
"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."
Using DPA Title III funds, the two new recipients will strengthen SRM production capability by modernizing existing facilities and improving manufacturing processes:
- DOW's $5.0 million investment in Systima, part of Karman Space & Defense, will leverage and build upon Systima's recently executed capital investment strategy to increase SRM nozzle production capacity. Specifically, the company will create an additional dedicated SRM nozzle production line for a major production program driving out-year production, as well as an optimized production cell for specific complex nozzles.
- DOW's $27.7 million investment in REDAR will establish expanded capacity and a modernized manufacturing capability for SRM case insulation materials. Internal insulation is a critical component of SRMs designed to provide thermal protection and erosion resistance. This investment provides an expedient route to increasing overall industry capacity of SRM internal insulation, as well as providing resiliency and increased competition across the SRM market.
This announcement brings the total number of DPA Title III investments made to the SRM industrial base under a recent Defense Industrial Base Consortium Other Transaction Agreement (DIBC OTA) solicitation to eight, for a total of $120.0 million.
These are two of 21 investments made by the DPA Purchases Office totaling $939.7 million in fiscal year 2025. Recipient cost shares total $88.0 million in FY 2025. The Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate oversees the DPA Purchases Office.
About the Office of the Assistant Secretary of War for Industrial Base Policy (OASW(IBP))
The OASW(IBP) works with domestic and international partners to forge and sustain a robust, secure, and resilient industrial base enabling the war fighter, now and in the future. OASW(IBP) also uses a new Defense Industrial Base Consortium Other Transaction Agreement (DIBC OTA) to solicit new ideas for research or prototype project solutions for critical supply chain resiliency focus areas. This OTA underscores the Department's ongoing dedication to safeguarding the integrity of our crucial supply chain and promptly giving our Warfighters the materials and technologies they need to accomplish their missions. To learn more about the DIBC OTA, please visit: https://www.dibconsortium.org.
