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The U.S. government has awarded Lockheed Martin a seven-year undefinitized contract action modification worth up to $53.86 billion for PAC-3 Missile Segment Enhancement (MSE) interceptors, advancing the Department of War’s Acquisition Transformation Strategy. With this award, the multiyear contract now totals $58.62 billion, following a $4.7 billion award in April that covered the first year.
Lockheed Martin said the new funding will accelerate PAC-3 MSE production and aims to triple capacity by the end of 2030. The company expects to increase headcount in Camden, Arkansas—where the final production of PAC-3 MSE interceptors is based—by about 50%, from 1,200 to approximately 1,850 jobs.
Company officials framed the multiyear structure as a way to expand manufacturing footprint, bolster the defense industrial base, and move critical interceptors to warfighters at greater speed and scale.
“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.
“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.”
Lockheed Martin was among the first companies to receive a munitions acceleration contract under the Department of War’s Acquisition Transformation Strategy and previously announced a framework agreement supporting the effort. The new PAC-3 MSE award is the company’s second major multiyear contract under the model, following a $35 billion award to accelerate Terminal High Altitude Air Defense (THAAD) interceptor production.
The company said it is investing $8 billion to $9 billion through 2030 to modernize more than 20 U.S. facilities and rapidly scale munitions output. Groundbreakings this year include the Munitions Production Center Building 47 in Troy, Alabama—supporting THAAD and future work on the Next-Generation Interceptor—and the Munitions Acceleration Center in Camden, Arkansas, supporting PAC-3.
Lockheed Martin describes the PAC-3 MSE as an advanced, highly accurate interceptor and points to performance in operational environments, including Operation Epic Fury, Ukraine, and other missions, as evidence of its capabilities. The company said it has already increased production in recent years to meet rising demand from the United States and partner nations.
