The US Department of Defense has awarded Lockheed Martin a contract worth up to $53.86 billion to ramp up production of PAC-3 Missile Segment Enhancement (MSE) interceptors through 2033.
The deal supports the Pentagon’s Acquisition Transformation Strategy aimed at accelerating munitions production and strengthening the US defense industrial base.
The latest modification expands the seven-year contract, which began with a $4.7-billion year-one award in April, bringing the total potential contract value to $58.62 billion.
PAC-3 MSE is designed to defeat tactical ballistic missiles, cruise missiles, aircraft, and other airborne threats. It features a larger dual-pulse rocket motor, upgraded control surfaces, and improved maneuverability compared to earlier Patriot interceptors.
The company said the funding will allow it to triple PAC-3 MSE production capacity by the end of 2030 while increasing employment at its Camden, Arkansas, production facility by 50 percent, from about 1,200 workers to roughly 1,850.
“Lockheed Martin is sparing no effort with our investment, hiring and facility upgrades as we deliver on the government’s acquisition transformation,” CEO Jim Taiclet said.
US Expands PAC-3 Production
The award follows several recent efforts by the US government and industry to increase PAC-3 production in response to growing operational demand.
In July, Lockheed Martin unveiled the PAC-3 Adapted Capability Effector, a lower-cost interceptor designed to counter mass-produced aerial threats at less than half the cost of the PAC-3 MSE, while enabling faster development and fielding.
In June, L3Harris expanded production of propulsion systems by adding two facilities at its Arkansas Advanced Propulsion Facilities campus.
In April, Lockheed Martin secured a $4.76-billion US Army contract for the missiles, most of it funded through foreign military sales.
The expansion also follows a January agreement with the Pentagon to increase annual production from 600 to about 2,000 interceptors over the next seven years.
