The US Government has awarded Lockheed Martin a contract valued at $4.7bn to expedite the production of the Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) interceptors.
This undefinitised contract action is intended to support both domestic and allied defence requirements, with the goal of delivering increased quantities of these interceptors within the current year.
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This contract comes after a framework agreement signed on 6 January with the Department of War (DoW) as part of the government’s Acquisition Transformation Strategy.
The agreement will increase annual output of PAC-3 MSE interceptors from nearly 600 to 2,000 units.
Lockheed Martin previously secured a $9.8bn contract in September last year for the same line of PAC-3 MSE missiles.
Lockheed Martin missiles and fire control president Tim Cahill said: “We are answering the nation’s call with urgency and partnering with the DoW to accelerate PAC-3 MSE production faster than ever before.”
The PAC-3 MSE missile is part of the Patriot weapon system and is used for air defence, with the capability to engage tactical ballistic missiles, cruise missiles, and aircraft.
Lockheed Martin states that, as part of its function within Joint All-Domain Operations (JADO), the interceptor has demonstrated the ability to integrate with the THAAD Weapon System, the US Army’s Integrated Air and Missile Defense Battle Command System (IBCS), and the F-35 aircraft.
The advanced “hit-to-kill” interceptor has been used in operations such as Operation Epic Fury, where it has been deployed to defend military personnel and infrastructure.
Lockheed Martin claims it was the first in the industry to announce a framework agreement for munitions acceleration under the Department of War’s Acquisition Transformation Strategy, with the aim of tripling PAC-3 MSE interceptor production.
Since 2017, Lockheed Martin has allocated more than $7bn towards expanding capacity for critical defence systems, including approximately $2bn dedicated specifically to increasing munitions output.
The company has recently begun construction of a new Munitions Acceleration Center to train future workers, and also opened a Rapid Fielding Center to assist in the development and testing of upcoming defence systems.
“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,” Cahill added.

