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Army Awards $9.8 Billion Multiyear PAC-3 MSE Contract to Lockheed Martin

Spanning FY2024–26, the award aims to accelerate deliveries to U.S. forces as well as allied customers.

Overview

  • The Army’s PEO Missiles & Space and Army Contracting Command-Redstone definitized a multiyear pact covering PAC-3 MSE production through fiscal 2026.
  • Official Army releases list 1,970 interceptors while InsideDefense reports 1,650, a quantity discrepancy not yet reconciled in public documents.
  • The deal includes associated hardware for U.S. and international partners under a mechanism that permits incremental annual funding.
  • Leaders cited faster inventory build, larger lot buys, cost predictability and a stronger munitions supply chain as key benefits of the approach.
  • A signing ceremony marking the contract was held September 3 at Lockheed Martin’s facility in Grand Prairie, Texas.