The Department of War awarded Lockheed Martin a seven-year undefinitized contract action modification for PAC-3 Missile Segment Enhancement interceptors on July 29, 2026. The new modification is valued at up to $53.86 billion, bringing the total multiyear contract value for the system to $58.62 billion. This follows a $4.7 billion award in April for the first year of the contract.
What it means
The award supports the Department of War’s Acquisition Transformation Strategy and marks the second multiyear contract for Lockheed Martin under this model, following a $35 billion contract for Terminal High Altitude Air Defense interceptors. Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment, said the announcement provides industry with long-term demand signals to build a resilient supply chain and deliver capabilities at the speed of relevance.
Lockheed Martin plans to triple PAC-3 MSE production capacity by the end of 2030. The company stated it will increase jobs at its Camden, Arkansas facility by 50%, rising from 1,200 to approximately 1,850. Camden is the site of Lockheed Martin’s final all-up round production for the interceptors. Lockheed Martin Chairman, President and CEO Jim Taiclet said the company is moving with wartime urgency to deliver the Arsenal of Freedom.
The company is investing $8 to $9 billion through 2030 to modernize more than 20 U.S. facilities. This year, Lockheed Martin held groundbreakings for Munitions Production Center Building 47 in Troy, Alabama, and the Munitions Acceleration Center in Camden, Arkansas.
Key facts
- $53.86 billion: Value of the new seven-year UCA modification
- $58.62 billion: Total multiyear contract value for PAC-3 MSE
- July 29, 2026: Date of the contract award
- End of 2030: Target date to triple production capacity
- 1,850: Projected job count at Camden, Arkansas facility (up from 1,200)
- $8 to $9 billion: Lockheed Martin investment for modernizing more than 20 U.S. facilities through 2030
- Troy, Alabama and Camden, Arkansas: Sites of recent munitions facility groundbreakings
Source: Lockheed Martin news release (PR Newswire)