Lockheed Martin Awarded Up to $35 Billion THAAD Production Contract

Lockheed Martin Awarded Up to $35 Billion THAAD Production Contract from United States Department of War

Lockheed Martin has received a seven-year undefinitized contract action (UCA) from the U.S. government worth up to $35 billion to significantly increase production of Terminal High Altitude Area Defense (THAAD) interceptors.

The award is intended to support a fourfold increase in interceptor production under the United States Department of War's Acquisition Transformation Strategy.

The contract follows a THAAD framework agreement signed earlier this year and is designed to provide long-term production stability while expanding manufacturing capacity and strengthening the U.S. defense industrial base.

According to Lockheed Martin, the agreement is among the first major multiyear procurement contracts executed under the department's new acquisition strategy.

THAAD is designed to intercept ballistic missile threats both inside and outside the Earth's atmosphere, providing a key layer of missile defense for the United States and allied nations.

The company said the expanded production effort is intended to meet increasing demand for missile defense capabilities.

Tim Cahill, President of Lockheed Martin Missiles and Fire Control, said the contract reflects a collaborative effort with the Department of War to accelerate production through multiyear procurement. He added that the approach is intended to strengthen the industrial base while delivering systems to military customers more rapidly.

Image Credits: Lockheed Martin