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Army Finalizes $9.8 Billion Multi-Year Buy of 1,970 PAC-3 MSE Interceptors From Lockheed

The definitized award provides cost predictability to accelerate deliveries.

the PAC-3 Missile Segment Enhancement (MSE) – the world’s most advanced air defense missile
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The launch of a Patriot PAC-3 interceptor missile. (Image credit: U.S. Army)

Overview

  • The contract spans fiscal years 2024–2026 under a definitized Undefinitized Contract Action, with a signing ceremony held Sept. 3 in Grand Prairie, Texas.
  • Procurement covers interceptors and associated hardware for U.S. forces and international partners, with the Army not disclosing specific foreign recipients.
  • PAC-3 MSE employs hit-to-kill interception against tactical ballistic missiles, cruise missiles, hypersonic threats and aircraft.
  • Lockheed Martin describes the award as the largest in the history of its Missiles and Fire Control business.
  • Lockheed plans to deliver about 618 missiles in 2025 under prior agreements, supply roughly 550 interceptors in FY25 and FY26 under this award, and ramp capacity toward about 650 per year by 2027.