Overview
- The Defense Department and Lockheed executed a framework that targets an annual increase of PAC-3 MSE interceptors from roughly 600 to about 2,000 over seven years.
- The agreement establishes terms for a seven-year supply contract that still requires congressional approval and funding, with some lawmakers objecting to late budget additions.
- Officials call the move a core element of the Acquisition Transformation Strategy, promising long-term demand signals, shared cost savings, and seven-year subcontracts for key suppliers.
- Lockheed says it delivered 620 PAC-3 MSEs in 2025 after boosting output more than 60% in two years, though details on added hiring or new facilities remain undisclosed.
- Surging demand tied to combat use in Ukraine and recent Middle East defenses has increased pressure on U.S. and allied stockpiles, with 17 nations operating Patriot systems.