Lockheed Martin said the award is one of the first major multiyear procurement contracts executed under the Department of War’s Acquisition Transformation Strategy. The company also described it as one of the first full-scale transitions from framework agreement to contract execution under the initiative.
The contract puts into action the THAAD framework agreement signed in January between the Department of War and Lockheed Martin. The company said the agreement provides the long-term demand signal needed to accelerate production capacity, strengthen the defense industrial base and deliver missile defense capability at speed and scale.
The award follows Lockheed Martin’s recent groundbreaking for a new Munitions Production Center in Troy, Alabama. The facility is part of the company’s more than $9 billion investment through 2030 to meet heightened munitions demand.
Lockheed Martin said the investment is already producing tangible results, including more than 20 new or modernized facilities across the United States. The company also recently opened the Next Generation Interceptor facility in Courtland, Alabama, and the Munitions Acceleration Center in Camden, Arkansas.
THAAD is the only U.S. system designed to intercept threats both inside and outside the atmosphere. Lockheed Martin said the system provides a critical layer of missile defense and has demonstrated its performance in operations including Operation Epic Fury.
“This award reflects our shared vision with the Department of War to strengthen America’s Arsenal of Freedom through a transformational shift to multiyear procurement,” said Tim Cahill, president, Lockheed Martin Missiles and Fire Control. “This new approach propels our efforts to strengthen the defense industrial base, expand production and deliver capabilities to the American warfighter at unprecedented speed and scale.”
Lockheed Martin said it was the first company in the industry to announce a framework agreement for munitions acceleration under the Department of War’s Acquisition Transformation Strategy. Since January, framework agreements have been established to expand production capacity for PAC-3 MSE, the THAAD interceptor and Precision Strike Missile.
In April, the U.S. government awarded Lockheed Martin a $4.7 billion contract to continue accelerated production of PAC-3 MSE this year. The company said these agreements are part of wider efforts to increase production capacity for key missile and munitions programmes.
Lockheed Martin said it is continuing to expand its workforce across manufacturing, engineering and skilled trades. The company said these investments are creating tens of thousands of high-quality American jobs and supporting capabilities needed by the United States and its allies.
The company also said it is strengthening supply chain resilience, deepening collaboration with suppliers and driving innovation across operations. Lockheed Martin said it is working regularly with suppliers critical to scaling munitions production, with a focus on speed, stronger relationships and solutions for current and future threats.
