Lockheed Martin Awarded $4.5B Army Contract for PAC-3 MSE Missile Production

The U.S. Army’s Program Executive Office Missiles and Space and Army Contracting Command in Redstone Arsenal, Alabama, has awarded Lockheed Martin Missiles and Fire Control a multiyear, $4.5 billion contract for Patriot Advanced Capability-3 Missile Segment Enhancement missiles production.

Specifically, the contract award entails the procurement of 870 PAC-3 MSE missiles and related equipment for fiscal year 2024, the Army said.

According to the Army, the PAC-3 MSE is a highly sought-after missile defense system that employs hit-to-kill technology, providing superior defense against various threats, including ballistic missiles, cruise missiles and hypersonic weapons.

Douglas Bush, the Army’s assistant secretary for acquisition, logistics and technology, a past Wash100 awardee and a past Potomac Officers Club event speaker, said the multiyear contract will stabilize and enhance the production of the PAC-3 MSE, which supports the service, the Joint Forces and U.S. allies.

Meanwhile, Brig. Gen. Frank Lozano, program executive officer for missiles and space, said multiyear contracts reduce procurement costs and promote investment in innovation.

Moreover, the Army noted that compared to traditional annual contracts, multiyear procurement agreements offer greater stability by guaranteeing purchases over a set timeframe, improving the planning and resource allocation of both the Department of Defense and industry partners.