The US government awarded Lockheed Martin a seven-year undefinitized contract action modification for up to $53.86 billion for PAC-3 Missile Segment Enhancement interceptors, supporting the Department of War’s Acquisition Transformation Strategy. The award brings the total multiyear contract value to $58.62 billion, following the $4.7 billion UCA awarded in April for year one.
The new funding enables Lockheed Martin to triple PAC-3 MSE production capacity by the end of 2030. It also supports a 50% increase in jobs, from 1,200 to approximately 1,850, in Camden, Arkansas, home to the company’s final all-up round production of PAC-3 MSE interceptors.
PAC-3 MSE has established itself as an advanced air and missile defense interceptor through performance in real-world operations, including during Operation Epic Fury, in Ukraine, and in missions around the world. This contract marks the second major multiyear contract for Lockheed Martin under the Department of War’s new acquisition model, following a $35 billion contract to accelerate production for Terminal High Altitude Air Defense interceptors. Lockheed Martin is investing $8 to $9 billion through 2030 to modernize more than 20 US facilities and scale munitions output, including groundbreakings this year at facilities supporting THAAD in Troy, Alabama, and PAC-3 in Camden, Arkansas.
KEY QUOTES:
“Today’s announcement turns concept into reality, providing industry with the long-term demand signals it needs to build a resilient supply chain, scale production, and deliver critical capabilities to our Warfighters at the speed of relevance.”
Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment
“This is a once-in-a-generation moment, and we are moving with wartime urgency to deliver the Arsenal of Freedom. Lockheed Martin is sparing no effort with our investment, hiring and facility upgrades as we deliver on the government’s acquisition transformation.”
Jim Taiclet, Chairman, President and CEO, Lockheed Martin
