Missile Defense Agency awards USD 2.8 billion contract to Lockheed Martin for further THAAD development

By Defence Industry Europe

The United States Missile Defense Agency (MDA) has awarded Lockheed Martin a contract worth up to USD 2.81 billion for the continued development of the Terminal High Altitude Area Defense (THAAD) system. The agreement, which spans from 1 February 2025 to 31 January 2035, will focus on upgrading hardware and software, as well as initial fielding of new capabilities.

 

The contract builds on the previous Advanced Capability Development (ACD) programme, supporting the integration and testing of improvements to the THAAD system. Primary work locations include Sunnyvale, California, and Dallas, Texas, with multiple other locations involved.

 

 

An initial task order of USD 12.7 million has been issued, with USD 200,000 allocated for the fiscal year 2025. THAAD is designed to intercept short-, medium-, and intermediate-range ballistic missiles in their final, or re-entry, phase using hit-to-kill technology, with an operational range of approximately 200 kilometres (120 miles).

The new contract supports the continued development of THAAD System Build 6.0, a significant upgrade to the existing system. According to the MDA’s fiscal year 2025 budget, this version enhances THAAD’s capability against manoeuvring air targets and expands the threat engagement area.

 

 

Lieutenant General Heath A. Collins, Director of the MDA, stated that “TH 6.0 includes capability enhancements to the THAAD interceptor, increased integration with Patriot Missile Segment Enhancement (MSE), and improvements to cybersecurity risk posture and programme protection.” The system is also expected to integrate with the US Army’s Integrated Air and Missile Defense Battle Command System (IBCS), with initial engineering beginning in 2025.

The latest THAAD variant’s operational availability has been brought forward to 2027 from its original projection of 2032. However, last month, lawmakers cancelled the IBCS-THAAD integration effort, following the previous termination of the Lower-Tier Future Interceptor programme, which was intended to replace the Patriot-3 MSE missile system.

 

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