In October 2024, the Missile Defense Agency (MDA) announced it was “investigating technologies” and concepts that could “dramatically decrease cost per kill” of enemy missiles. In August 2025, the MDA issued a more formal solicitation for white papers detailing “innovative approaches” to rapidly prototype and demonstrate “very low-cost (less than $750,000 per missile), modular interceptor designs to counter ballistic and hypersonic threats.”
Given the high cost of current anti-missile missiles and their rapid expenditure in Middle Eastern and Ukrainian airspace warfare, the MDA has concluded the U.S. must have hundreds, if not thousands, of Low-Cost Interceptors (LCIs) on hand to win the next major missile war.
The MDA seeks creative ideas from small businesses—innovative technology and conceptual manufacturing methods from “non-traditional” suppliers. In other words, the MDA is looking for outside-the-Beltway thinking.
The U.S. Small Business Administration (SBA), via its Small Business Innovation Research (SBIR) program’s website, provides one of the best summaries of the MDA’s request. The MDA wants a “detailed design of a low-cost interceptor (LCI) to supplement legacy missile defense systems and provide affordable options to help rebalance the offense/defense cost disparity.”
Large-scale attacks, like Iran’s air and space assaults on Israel, drive the MDA’s search. The enemy will use various offensive systems, some of which are low-cost compared to defensive missiles. The MDA specifies that the LCI must be able to engage supersonic cruise missiles (SCMs), short- and medium-range ballistic missiles (SRBMs, MRBMs), and hypersonic glide vehicles (HGVs).
The baseline LCI design “should be capable of endo-atmospheric engagements, with a maximum range of 100–300 km from the launcher.”
LCI proposals should “utilize Commercial-Off-The-Shelf (COTS) components and supply chains” as well as current subsystems and employ “rapid, low-cost manufacturing practices.” Using proven systems accelerates acquisition and fielding.
Are the requirements brutal? Absolutely. MDA staffers know that rapidly developing a cheaper yet adequate missile will require trade-offs. The solicitation notes that MDA warfighters will accept “reduced performance in exchange for greatly decreased unit costs.” Why? Because a larger missile stockpile allows them to fire four or five affordable interceptors at a target instead of two expensive anti-ballistic missiles (ABMs).
The MDA believes enough cheaper but adequate missiles can achieve the same “aggregate probability of kill (Pk)” as current, more expensive missile interceptors.
Is the MDA asking for too much? The fact that it’s reaching out to small businesses and individual innovators is a significant advantage.