REDSTONE ARSENAL, Ala. — The U.S. Army has finalized a multi-year production deal with Lockheed Martin Missiles and Fire Control for the Patriot Advanced Capability-3 Missile Segment Enhancement, a move aimed at accelerating deliveries and expanding inventories for U.S. forces and international partners amid sustained global demand for air and missile defense.
Valued at $9.8 billion and spanning fiscal years 2024 through 2026, the contract funds procurement of 1,970 PAC-3 MSE interceptors and associated equipment. Army officials said the agreement converts a previously awarded undefinitized contract action into a fully negotiated, long-term production plan administered by Army Contracting Command-Redstone Arsenal in coordination with the Army’s Program Executive Office Missiles and Space.
Multi-year procurement contracts allow the Pentagon to purchase goods beyond a single fiscal year, typically with incremental funding that remains subject to annual congressional appropriations. Defense leaders favor the approach for its predictable pricing, long-lead planning, and supply chain stability—factors that can lower costs and accelerate delivery schedules for munitions in high demand.
“Our procurements at PEO Missiles and Space are beneficial because they enable the Army to procure a larger quantity of missiles for more rapid delivery, thus filling our inventory faster,” said Maj. Gen. Frank Lozano, Program Executive Office Missiles and Space. “Plus, multi-year contracts mutually benefit both the government and our industry partners,” he added.
The PAC-3 MSE is the most advanced interceptor in the Patriot family and employs hit-to-kill technology, destroying incoming targets through direct impact rather than explosive fragmentation. The missile is designed to defeat a range of threats, including tactical ballistic and cruise missiles, hypersonic weapons, and aircraft, and is a key component of integrated air and missile defense architectures fielded by the United States and a growing number of allies.
“This award takes advantage of a contract mechanism that allows us to achieve cost predictability and savings while strengthening the critical munitions supply chain and maximizing our operational efficiency,” said Joseph Giunta Jr., senior contracting official for Army Contracting Command-Redstone Arsenal. “It reflects disciplined acquisition and responsible stewardship of taxpayer resources, and I am proud of the dedicated contracting and acquisition professionals whose efforts made this achievement possible.”
Army officials said the award underscores a coordinated acquisition strategy between PEO Missiles and Space and Army Contracting Command-Redstone Arsenal to sustain and scale production across multiple fiscal years. By locking in quantities and timelines, the service expects to better align industrial capacity with operational needs, while providing industry with the stability required to invest in workforce, tooling, and sub-tier suppliers.
A signing ceremony marking the agreement took place Sept. 3 at Lockheed Martin’s facility in Grand Prairie, Texas.
