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Industrial Surge · Americas · Procurement

Navy Awards $70M to CoAspire for Ground-Launched RAACM-ER Cruise Missile Under CHAOS Program

The U.S. Navy awarded CoAspire a $70 million Other Transactional Agreement (OTA) on July 22 to develop a ground-launched version of the RAACM-ER cruise missile under the CHAOS program, designed to provide allies and coalition partners with a lower-cost maritime and land-strike capability. The turbojet-powered missile uses GPS-assisted navigation and long-wave infrared seeking to engage moving and static targets.
AI synthesis, editor-reviewed · 1 source · July 22, 2026
Photo: The War Zone

The OTA timing is not coincidental. With the Hormuz blockade now 140+ days active and the Iran conflict consuming $21B in emergency munitions, the Navy is simultaneously securing allied strike capacity and reducing U.S. inventory drain.

RAACM-ER's passive infrared seeker and GPS navigation sidestep the supply constraints on active-radar seekers that plague Patriot and SAMP/T upgrades. If CoAspire can deliver a 12-18 month prototype-to-FMS cycle, allies like Poland, Japan, and South Korea gain a maritime strike option that doesn't compete with U.S. air-defense procurement — a critical constraint when Europe is co-producing SAMP/T and Germany is studying Patriot alternatives.

WHY IT MATTERS

The CHAOS program directly addresses the $21B munitions replenishment request the Pentagon filed just yesterday — allies now have an affordable alternative to PAC-3 and JASSM derivatives that can scale production without the industrial bottleneck consuming U.S. inventory.

CoAspire's $70M OTA locks in a foreign military sale pathway at a cost point below the $100K-per-unit interceptors (like X-Bow's Buckler) that are already straining sustainment budgets. If RAACM-ER reaches production at scale, it offloads strike demand from U.S. inventory, freeing munitions for the active Iran conflict and Taiwan contingency planning.

WHAT THIS DOESN’T TELL US

Has the Navy selected competing contractors under CHAOS, or is CoAspire the sole awardee? The article states this is unknown — clarity on competitive selection will signal whether CHAOS becomes a true allied production ecosystem or a single-vendor program.

Sources: The War Zone
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