WASHINGTON: The US Army expanded its Lockheed Patriot deal on Wednesday, July 29, to a potential value of $58.62 billion for PAC-3 MSE interceptor production through fiscal 2032.
The new undefinitized contract modification carries a ceiling of $53.86 billion. It follows a $4.7 billion first-year award issued in April, Lockheed Martin said.
The seven-year arrangement provides a long-term production framework rather than immediately obligating the entire $58.62 billion. Congress must appropriate funding, while final terms and delivery schedules remain under negotiation.
The agreement covers production from fiscal 2026 through 2032. It comes as US operations against Iran and weapons deliveries to Ukraine increase pressure on air-defence inventories.
Lockheed said the agreement would help it triple PAC-3 MSE production capacity by the end of 2030. The company also plans to increase employment at its Camden, Arkansas, plant from 1,200 to about 1,850.
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The defence contractor plans to invest between $8 billion and $9 billion through 2030. The programme covers more than 20 US facilities, including new munitions centres in Alabama and Arkansas.
PAC-3 MSE uses hit-to-kill technology within the Patriot system. It can intercept ballistic missiles, cruise missiles and aircraft.
The Centre for Strategic and International Studies estimated that the US has fewer than 1,000 Patriot interceptors and about 250 THAAD interceptors remaining. The Washington-based think tank warned that depleted inventories could affect US readiness for other conflicts.
