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The U.S. government has awarded Lockheed Martin a seven-year undefinitized contract action valued at up to $35 billion to quadruple production of Terminal High Altitude Area Defense (THAAD) interceptors. The deal is among the first major multiyear procurements executed under the Department of War’s Acquisition Transformation Strategy and marks an early full-scale transition from a previously signed framework agreement to contract execution.
The award implements the framework agreement signed in January between the Department of War and Lockheed Martin, providing a long-term demand signal intended to accelerate production capacity, strengthen the defense industrial base, and deliver missile defense capability at speed and scale for the United States and its allies.
Lockheed Martin has been expanding manufacturing capacity tied to increased munitions demand. In recent weeks, the company broke ground on a new Munitions Production Center in Troy, Alabama, part of more than $9 billion in investment planned through 2030 that includes more than 20 new or modernized facilities across the country. The company also opened a Next Generation Interceptor facility in Courtland, Alabama, and a Munitions Acceleration Center in Camden, Arkansas.
THAAD is described as the only U.S. system designed to intercept threats both inside and outside the atmosphere, providing a key layer of missile defense. Its performance has been demonstrated in operations including Operation Epic Fury, where it continues to defend forces and key infrastructure against evolving threats.
“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 was the first in the industry to announce a framework agreement for munitions acceleration under the Department of War’s Acquisition Transformation Strategy. Since January, additional framework agreements have been established to expand production capacity for PAC-3 MSE, the THAAD interceptor and the 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 says it continues to expand its workforce, creating tens of thousands of high-quality jobs across manufacturing, engineering and skilled trades, and is deepening collaboration with suppliers to scale munitions production, emphasizing speed and solutions to better prepare for current and future threats.
