The latest award follows a $4.7 billion undefinitized contract action issued in April for the first year. Lockheed Martin said the agreement supports the government’s Acquisition Transformation Strategy.
The contract will support a major increase in PAC-3 MSE production. Lockheed Martin plans to triple manufacturing capacity by the end of 2030.
The expansion will also increase employment at the company’s Camden, Arkansas, operation by 50%. Lockheed Martin expects the workforce there to grow from about 1,200 to approximately 1,850 employees.
Camden handles final all-up-round production of PAC-3 MSE interceptors. The site is being expanded to support higher output under the new multiyear agreement.
“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,” said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment. The government is using multiyear procurement to provide industry with clearer production requirements.
“This is a once-in-a-generation moment, and we are moving with wartime urgency to deliver the Arsenal of Freedom,” said Lockheed Martin Chairman, President and CEO Jim Taiclet. “Lockheed Martin is sparing no effort with our investment, hiring and facility upgrades as we deliver on the government’s acquisition transformation.”
The PAC-3 MSE agreement is Lockheed Martin’s second major multiyear award under the new acquisition model. It follows a $35 billion contract to accelerate Terminal High Altitude Area Defense interceptor production.
Lockheed Martin said it was the first company to announce a framework agreement under the munitions acceleration initiative. It was also among the first to receive a contract under the government’s Acquisition Transformation Strategy.
The company plans to invest between $8 billion and $9 billion through 2030 across more than 20 U.S. facilities. The spending is aimed at expanding munitions output and modernizing production capacity.
Lockheed Martin has already broken ground on two munitions facilities this year. Those projects are located in Troy, Alabama, and Camden, Arkansas.
The Troy site will support THAAD production and future work on the Next-Generation Interceptor. The Camden Munitions Acceleration Center will support increased PAC-3 production.
Lockheed Martin said PAC-3 MSE has been used during Operation Epic Fury, in Ukraine and in other operational missions. The company said the interceptor performed beyond specifications while protecting critical assets.
