Lockheed Martin Secures $4.7 Billion PAC-3 MSE Production Acceleration Contract
Lockheed Martin won a $4.7 billion undefinitized contract to accelerate PAC-3 MSE production and deliver record interceptor volumes for U.S. and allied forces this year. The award builds on a Jan. 6 Acquisition Transformation Strategy framework and follows $7 billion in prior capacity investments, including $2 billion for munitions acceleration.
1. Contract Award and Production Ramp-Up
On April 10, Lockheed Martin secured a $4.7 billion undefinitized contract action to accelerate PAC-3 Missile Segment Enhancement production, enabling record interceptor deliveries for U.S. and allied forces throughout 2026.
2. Investment in Munitions Capacity
This award builds on more than $7 billion in investments since 2017 to expand munitions capacity, including a dedicated $2 billion acceleration fund aimed at boosting PAC-3 MSE output and overall production throughput.
3. Acquisition Transformation Strategy Context
The contract follows a Jan. 6 framework agreement under the Acquisition Transformation Strategy that tripled PAC-3 MSE production and was complemented by deals to quadruple Terminal High Altitude Area Defense and Precision Strike Missile capacities.
4. Workforce Expansion and Facility Development
To support the accelerated pace, Lockheed Martin is developing its Munitions Acceleration Center and Rapid Fielding Center and is creating tens of thousands of manufacturing, engineering and skilled trades positions.