The Pentagon awarded Lockheed Martin a seven-year contract worth up to $35 billion to increase production of Terminal High Altitude Area Defense (THAAD) interceptors. The award is one of the first major procurement contracts under the Department of War’s Acquisition Transformation Strategy and “represents one of the first full-scale transitions from framework agreement to contract execution under the initiative,” the company explained.
“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,” Tim Cahill, President of Lockheed Martin Missiles and Fire Control, said in a statement. “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 previously awarded a contract to “advance production acceleration and deliver record numbers of combat-proven interceptors for American and allied forces this year,” the defense contractor said in April.
The defense contractor also recently signed a deal with the Pentagon for the Precision Strike Missile, or PrSM, a long-range weapon capable of hitting targets between 60 and 499 kilometers out. Under the agreement, Lockheed will invest in tooling upgrades, factory improvements, and testing equipment to reduce production delays.
Reports indicated earlier this week that President Trump called defense industry executives to the White House for a meeting on rebuilding the nation’s munitions stockpiles. Trump addressed the meeting from the Oval Office on Monday, confirming the planned session and announcing that automakers would play a role in weapons manufacturing. “We’re building plants all over the country,” Trump said. “Some of the car companies, if they have any excess capacity, they’re making a deal to build missiles and the Patriot in particular.”
