The contract also includes test equipment and spare parts to support future maintenance, the agency said. It is also commissioning new suppliers, the DPA news agency reported.
NATO Secretary General Jens Stoltenberg welcomed the announcement by the alliance partners. "This investment shows the strength of transatlantic defense cooperation and NATO’s commitment to keeping our people safe."
Several NATO member states, including Germany, commissioned the agency to purchase the air defense systems.
NSPA boss Stacy A Cummings said the contract shows the NSPA can successfully deliver effective and cost-efficient multinational solutions for nations while strengthening European industrial capabilities.
"Customer nations have achieved economies of scale, reduced their logistics footprint, and are obtaining capable solutions and support under a proven turnkey legal framework," she said.
Production is to be handled by a joint venture between European defense manufacturer MBDA and US company Raytheon, in Schrobenhausen, Bavaria, where Patriot missiles are already maintained.
Now, production facilities are to be set up there too, according to a spokesman.
Patriot, which stands for "Phased Array Tracking Radar for Intercept on Target," is used to combat enemy aircraft, ballistic missiles and cruise missiles.
The NSPA is NATO's organization for multinational procurement, support and maintenance in all areas.