Lockheed Martin awarded $53.86B federal contract modification

The U.S. government recently awarded global defense technology company Lockheed Martin a seven-year undefinitized contract action modification for up to $53.86 billion for PAC-3 Missile Segment Enhancement (MSE) interceptors.

The original $4.7 billion contract was awarded in April for year one. The modification brings the total multiyear contract value to $58.62 billion.

The additional funding further will allow Lockheed Martin to increase PAC-3 MSE production and triple capacity by the end of 2030. It also supports a 50 percent increase in jobs at Lockheed Martin’s Camden, Ark., facility where the PAC-3 MSE interceptors are manufactured.

“This is a once-in-a-generation moment, and we are moving with wartime urgency to deliver the Arsenal of Freedom,” Jim Taiclet, Lockheed Martin chairman, president and CEO, said. “Lockheed Martin is sparing no effort with our investment, hiring and facility upgrades as we deliver on the government’s acquisition transformation.”

PAC-3 MSE is an advanced air and missile defense interceptor that provides an accurate shield against evolving threats. It performed beyond specifications to protect critical assets in operational environments such as Operation Epic Fury and Ukraine.

Lockheed Martin has been increasing PAC-3 MSE production in recent years to meet growing demand from the United States and partner nations.