New NPS Challenge Aims to Rewrite How the Military Builds Missiles

Why It Matters

By slashing missile unit costs from millions to a few thousand dollars, the challenge could dramatically expand munition availability and reshape defense procurement practices.

Key Takeaways

• Challenge rewards methodology, not hardware prototype
• Targets $5,000 missiles versus million-dollar systems
• Uses 3D printing and commercial off‑the‑shelf parts
• Aims for scalable, rapid production
• Shifts defense procurement toward agile manufacturing

Pulse Analysis

The Department of Defense has long struggled with the high cost and long timelines of traditional missile programs, where a single system can exceed millions of dollars. To counter this, the Naval Postgraduate School introduced the Tactical Missile Innovation Challenge, a prize competition that flips the usual procurement model. Rather than requiring a finished hardware prototype, the contest asks entrants to submit a repeatable design methodology using low‑cost, additive‑manufacturing techniques. Unveiled at the AFCEA/USNI WEST conference in San Diego, the challenge reflects a broader shift toward agile, cost‑effective acquisition across the services.

The challenge promises functional missiles for roughly $5,000—orders of magnitude cheaper than legacy weapons that often top $1 million per unit. By leveraging commercial off‑the‑shelf components and advanced 3D‑printing, participants can iterate designs quickly, test them in realistic settings, and scale production without the bottlenecks of bespoke aerospace supply chains. Although additive manufacturing raises material‑performance and certification concerns, early prototypes have shown that precision guidance, propulsion, and warhead integration are achievable with readily available parts, dramatically lowering entry barriers for innovators.

Success could reshape the defense industrial base by rewarding modular, mass‑producible munitions over bespoke, high‑cost platforms. A “quantity has a quality of its own” approach would let fleets replenish stocks swiftly after attrition, boosting resilience in contested logistics. The model may also inspire similar prize competitions in hypersonics, electronic warfare, and autonomous systems, accelerating technology diffusion while curbing taxpayer exposure. For contractors and startups, the initiative offers a clear path to demonstrate value without the overhead of traditional contracts, potentially redefining how the military sources future warfighting capabilities.

New NPS Challenge Aims to Rewrite How the Military Builds Missiles

Thu, 02/12/2026

Kaitie Penry, Director of Research Innovation, NPS

War Department components are pivoting away from “exquisite” hardware in favor of agile, low‑cost manufacturing methodologies. Part of this shift includes prize challenges like the Naval Postgraduate School’s (NPS) Tactical Missile Innovation Challenge, a non‑traditional challenge that emphasizes methodology.

Speaking at AFCEA/USNI WEST in San Diego, California, NPS Director of Research Innovation Kaitie Penry said that the Tactical Missile Innovation Challenge, unlike traditional military contracts that demand a hardware prototype, asks participants for a design methodology. The goal, she said, is to produce missiles at scale using 3D printing and commercial off‑the‑shelf parts for cost efficacy and scalability.

Penry also said that the challenge aims to replace million‑dollar assets with $5,000 alternatives that can be mass‑produced, allowing the fleet to maintain a “quantity has a quality of its own” advantage for munitions.

Check out our full coverage of the conference.