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The U.S. Army has selected Lockheed Martin and a Boeing-Anduril team to move into the next phase of a competition to develop a second interceptor for its Indirect Fire Protection Capability Increment 2 program, advancing two industry teams as the service seeks stronger defenses against cruise missiles and other aerial threats.

The Army confirmed the decision on September 10, 2026. The selected companies will now move into the demonstration phase of the development effort, where their interceptor designs will be evaluated as part of the Army’s continuing effort to strengthen its air and missile defense capabilities.

The decision also removes Rafael’s U.S. subsidiary from the competition, leaving Lockheed Martin and the Boeing-Anduril team to continue the development of the second interceptor.

An Army spokesperson confirmed that Lockheed Martin and the Boeing-Anduril team had been selected to advance to the next stage of the competitive program.

“The companies have been selected to advance to the demonstration phase of the development effort,” the spokesperson said. The Army added that additional information about the competition would be released when appropriate.

The announcement follows Boeing’s confirmation on September 9 that its team with Anduril had advanced. The Army’s latest statement confirms that Lockheed Martin will also continue into the demonstration phase.

Rafael’s U.S. subsidiary, which joined the competition earlier this year, did not advance. Lockheed Martin referred questions about the decision to the Army, while Rafael did not respond to a request for comment.

The next phase will allow the Army to continue assessing the competing interceptor designs as it works toward developing a second missile for its IFPC Increment 2 launcher.

Filling a Gap in Air and Missile Defense

The IFPC Increment 2 program is designed to protect U.S. forces against a range of aerial threats, including cruise missiles and other targets that may be difficult for existing air defense systems to engage.

The system is intended to fill a gap between short-range air defense systems and longer-range systems such as the Patriot and Terminal High Altitude Area Defense, or THAAD.

Short-range air defense systems are designed to protect forces and key locations against threats such as drones, aircraft, and some incoming missiles. Longer-range systems, meanwhile, provide protection against more distant and demanding threats.

The Army’s IFPC Increment 2 effort is intended to provide an additional layer of defense between these capabilities.

The need for a second interceptor became clearer during the development of the Army’s first IFPC Increment 2 solution. Army officials previously said that soldiers would need a more capable interceptor to engage low-flying, supersonic cruise missiles.

The second interceptor competition is therefore an important part of the Army’s broader effort to improve its ability to defend against different types of aerial threats.

Boeing and Anduril Present New Interceptor Design

Boeing and Anduril have described their proposed interceptor as a compact missile designed to combine several technologies in a single system.

According to Boeing, the interceptor includes seeker technology, a compact form factor, and a solid rocket motor supplied by Anduril Rocket Motor Systems.

The design also uses a Modular Open Systems Architecture, which is intended to support the integration of different technologies and components.

Bob Ciesla, vice president of Boeing Precision Engagement Systems, said the company’s approach is designed to support reliable and affordable production.

“Scalable production approach is designed to provide a reliable, affordable layer of defense against a range of aerial threats to protect the warfighter with practical, dependable capability when it matters most,” Ciesla said.

The Boeing-Anduril team’s design is one of the two concepts that will continue into the next phase of the Army’s competition. The Army has not yet announced which company will ultimately be selected to provide the second interceptor.

Competition Began in 2025

The current competition follows earlier decisions by the Army to bring several companies into the development effort.

In October 2025, the Army awarded Lockheed Martin an Other Transaction Authority agreement for the first phase of the program. The Boeing-Anduril team joined the competition in December 2025. Rafael’s U.S. subsidiary was added in February 2026.

The three companies were then competing to develop the second interceptor for the IFPC Increment 2 system. The Army’s September 2026 decision narrows the competition to Lockheed Martin and Boeing-Anduril.

The companies will now move forward with the demonstration phase, while the Army continues to assess the designs and their ability to meet the service’s requirements.

First IFPC Interceptor Under Development

The second interceptor competition is separate from the Army’s earlier selection of a first interceptor for the IFPC Increment 2 system.

In late 2024, the Army awarded a contract to Dynetics, a subsidiary of Leidos, and RTX for the first interceptor solution. That system combines Dynetics’ Enduring Shield launcher with a ground-launched version of RTX’s AIM-9X Sidewinder missile.

The Enduring Shield launcher is designed to provide a mobile air defense capability for U.S. forces. The first interceptor is intended to provide the Army with a new capability for engaging aerial threats. However, Army officials later identified the need for a second, more capable interceptor to deal with lower-flying, supersonic cruise missiles.

That requirement led to the Army’s search for another interceptor design. The second interceptor is expected to complement the first system rather than replace it. Together, the two interceptors are intended to provide the Army with a broader range of options for defending against different aerial threats.

Next Steps for the Army

The selection of Lockheed Martin and Boeing-Anduril marks the latest step in the Army’s effort to develop a more capable layered air defense system.

The demonstration phase will allow the two teams to continue developing and evaluating their interceptor concepts.

The Army has not released the full details of the next phase, including the precise schedule, testing arrangements, or final selection timeline.

The service has also not announced which company will eventually win the second interceptor contract. The competition comes as the U.S. military continues to focus on improving its ability to defend against cruise missiles, drones, and other aerial threats.

For the Army, the IFPC Increment 2 program is intended to strengthen the protection of deployed forces and help close a gap between existing short-range and longer-range air defense systems.

The selection of Lockheed Martin and Boeing-Anduril means that both companies will continue working toward that goal as the Army moves into the next stage of development.