Lockheed Martin Secures $2.8 Billion Victory with THAAD Contract!
The Missile Defense Agency (MDA) has recently granted Lockheed Martin (NYSE: LMT) a subsequent development agreement for the Terminal High Altitude Area Defense (THAAD) Weapon System. This indefinite delivery/indefinite quantity (IDIQ) agreement facilitates the ongoing advancement of the THAAD Weapon System’s functionalities over the upcoming five years – with two options for extension – allowing a performance duration of up to 10 years. The contract has a maximum value of $2.8 billion if both options are activated. This initiative enhances THAAD’s capabilities in response to increasingly sophisticated missile challenges.
“The field-tested THAAD interceptor serves as a robust deterrent against a variety of ballistic missile risks, and we are delighted to continue enhancing its functionalities for our present and prospective clients,” stated Dan Nimblett, vice president, Upper Tier Integrated Air and Missile Defense at Lockheed Martin Missiles and Fire Control. “THAAD is an essential component of our missile defense framework, and this endorsement from the MDA strengthens our dedication to jointly providing superior defensive capabilities against evolving missile threats.”
This latest agreement follows the THAAD Advanced Capability Development contract, awarded in 2012, and aims to expand upon the system’s existing functionalities. The development scope will be specified through distinct task orders throughout the performance timeline.
THAAD delivers exceptionally efficient, field-tested missile defense against short, medium, and intermediate-range ballistic missile threats. The THAAD Weapon System boasts an impeccable flight test record of 17 for 17 interceptions. Sixteen of these interceptions were achieved using a THAAD interceptor. The THAAD Weapon System successfully integrated with the PAC-3 MSE interceptor by launching and managing PAC-3 MSEs while intercepting a ballistic missile target.
