Lockheed Martin Lands Potential $53.86B UCA Modification for PAC-3 MSE Interceptor Production

• Lockheed Martin has received a potential $53.86 billion undefinitized contract action modification for PAC-3 MSE interceptors
• The seven-year UCA enables Lockheed to expand its production capacity for the interceptors
• The company in April secured an initial UCA for PAC-3 MSE production, worth $4.7 billion

Lockheed Martin announced Wednesday that it has been awarded a seven-year undefinitized contract action, or UCA, modification valued at up to $53.86 billion for the production of PAC-3 missile segment enhancement interceptors. The award expands a $4.7 billion UCA the company secured this April, which covered the first year of the program. With the modification, the multiyear contract’s total value rises to $58.62 billion.

“Today’s announcement turns concept into reality, providing industry with the long-term demand signals it needs to build a resilient supply chain, scale production, and deliver critical capabilities to our Warfighters at the speed of relevance,” said Michael Duffey, under secretary of war for acquisition and sustainment, and winner of the 2026 Wash100 Award.

How Will the UCA Affect PAC-3 MSE Production?

The modification is expected to enable Lockheed Martin to increase its production of PAC-3 MSEs, with capacity seen to be tripled by the end of 2030. The additional funding also supports workforce expansion at the company’s facility in Camden, Arkansas. The facility houses Lockheed’s final all-up round production of PAC-3 MSE interceptors.

What Is the PAC-3 MSE?

A component of the Patriot weapon system, PAC-3 MSE is an advanced hit-to-kill interceptor, according to Army.mil. The interceptor is one of the elements of the U.S. Army’s integrated air and missile defense capability and works to counter various aerial threats. It has been deployed in Ukraine and during Operation Epic Fury.

Aside from Lockheed, L3Harris has also been awarded a similar framework agreement to increase the production capacity of propulsion components for the PAC-3 MSE and the Terminal High Altitude Area Defense weapon system.