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Lockheed Martin Lands $4.7B Army Contract to Accelerate PAC-3 MSE Production

Lockheed Martin's Tim Cahill. Lockheed Martin has secured a contract to accelerate the production of PAC-3 MSE interceptors.
Tim Cahill President Lockheed Martin

Lockheed Martin has received a $4.76 billion undefinitized contract action for the production of Patriot Advanced Capability-3 Missile Segment Enhancement, or PAC-3 MSE, interceptors for U.S. and allied forces.

Lockheed Martin Lands $4.7B Army Contract to Accelerate PAC-3 MSE Production - top government contractors - best government contracting event

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What Is the Scope of the PAC-3 MSE Interceptor Contract?

The Dallas-based global defense technology company said Friday the award will accelerate and expand PAC-3 MSE interceptor manufacturing, enabling higher production volumes. According to the contract announcement released by the Department of War, the deal includes hardware and equipment, alongside technical planning, management and incidental support services.

The firm-fixed-price contract, awarded by the Department of the Army, is expected to run through June 30, 2030, with work carried out across multiple U.S. locations.

“Our investments in our facilities, workforce and supply chain ensure we can deliver at scale and with speed. With the right tools, proven processes and skilled employees in place, we are positioned to deliver a record number of munitions in support of the warfighter and our allies,” said Tim Cahill, president of missiles and fire control at Lockheed Martin.

What Is PAC-3 MSE?

PAC-3 MSE is a battle-proven air defense missile designed to counter a wide range of threats. It has been deployed in operations such as Epic Fury to protect forces and critical infrastructure. The award, aligned with the government’s Acquisition Transformation Strategy, builds on a recently established seven-year agreement between Lockheed Martin and the DOW to scale production capacity from 600 to as many as 2,000 interceptors annually.

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Written by Miles Jamison

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