Overview
- The Army on Thursday awarded Lockheed Martin an Other Transaction Agreement worth about $1.08 billion, with the government providing $660.4 million and Lockheed cost-sharing roughly $423 million to fund prototype development and testing.
- The program backs a PAC-3 Edge–derived interceptor intended to extend engagement range, altitude, speed and maneuverability to strengthen the Army’s layered integrated air and missile defense.
- Under the accelerated acquisition approach, the Army and Lockheed will build and test prototypes to measure performance against requirements before any production decision is made.
- Lockheed has said it plans to begin flight testing in 2027 and has reported an aspirational full rollout around 2031, language that company spokespeople framed as a planned schedule rather than a contractual guarantee.
- The award responds to rising threats and heavy interceptor use that have depleted inventories and raised per-unit cost concerns, prompting debates over expanding production lines, using multiple vendors and improving sustainment such as planned PAC-3 maintenance facilities in Europe.