U.S. Army Awards $4.5 Billion Contract to Lockheed Martin for Patriot Missile Production

The U.S. Army has awarded a $4.5 billion contract to Lockheed Martin Missiles and Fire Control for the production of 870 interceptor missiles for the Patriot system and associated hardware. This contract aims to expedite the production of the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) weapon amid high battlefield demand.

“This multiyear contract award for the PAC-3 MSE missile follows through on the Army’s commitment to stabilize and expand our production capability for this critical weapon system, which is vital to supporting the US Army and Joint Force, along with Ukraine and other allies around the world,” said Douglas Bush, the Army’s Assistant Secretary for Acquisition, Logistics and Technology.

The contract is designed to maintain high production rates and reduce procurement costs. Brig. Gen. Frank Lozano, Program Executive Officer Missiles and Space, stated that this multiyear approach is more cost-effective than annual renewals. The contract aims to provide "stability and predictability" in production.

Amid rising threats from militaries and non-state actors using low-cost uncrewed aerial systems and missiles, the U.S. military seeks new, cost-effective countermeasures while bolstering its munitions stockpile. The Patriot system and its missiles are in high demand both domestically and internationally.

Earlier this year, Ukraine used a Patriot missile system to down a Russian A-50 Mainstay radar jet. The U.S. has prioritized delivering Patriot missiles to Ukraine as part of an aid package in April, with the White House recently announcing it would redirect some deliveries originally meant for other countries to meet Ukraine's urgent needs.

U.S. troops overseas have also utilized the Patriot system. American forces in Iraqi Kurdistan used a Patriot system to intercept missiles and drones fired by Iran and its partners against Israel in April, successfully taking out a ballistic missile over Erbil.