U.S. Army awards four year contract worth up to $4.5B to Lockheed Martin for missile production

A surge of Joint-Air-to-Ground Missiles (JAGM) and HELLFIRE missiles will come to the U.S. Army over the years ahead as part of a four-year production contract newly awarded to Lockheed Martin.

Initially, the procurement and production award was valued at $439 million as a basic Program Year 1 award. However, as support under the contract will be provided for the next four years, it also offered three follow-on awards that begin later this year, bumping the total contract value to $4.5 billion. The new supply and support will benefit both the U.S. Army and the international customers of Lockheed Martin.

“Not only does this contract award support sustained production, but this is the first joint production contract award from the U.S. government for JAGM and HELLFIRE,” Joey Drake, program management director of Air-to-Ground Missile Systems at Lockheed Martin Missiles and Fire Control, said. “This contract award, along with last year’s JAGM full-rate production decision, shows the Army’s confidence in our product’s combat effectiveness and defensive capabilities, including its potential for longevity due to the support for increased production.”

Both JAGM and HELLFIRE are American-made systems, designed and developed in Orlando, Fla. Further, the weapon systems are manufactured at various Lockheed Martin facilities around the country. So far, more than 125,000 such missiles have been made, and going forward, the company added that JAGM will likely face a significant increase in international demand. HELLFIRE, on the other hand, already has more than 30 customers and is being integrated into more than 15 platforms.

Under the new contract, Lockheed Martin will also have some flexibility to option the weapons to multiple domestic and international customers.