Lockheed Martin Secures $2.8B to Enhance THAAD Missile Defense

The U.S. Missile Defense Agency (MDA) has awarded Lockheed Martin a follow-on development contract for the Terminal High Altitude Area Defense (THAAD) weapon system, with a potential value of $2.8 billion if fully exercised.

The contract will support THAAD’s development over the next five years, with two options to extend the performance period to a total of ten years. The agreement aims to enhance THAAD’s ability to counter evolving ballistic missile threats.

THAAD has demonstrated 17 successful flight test intercepts, including integration with the PAC-3 MSE interceptor. The new contract builds on previous efforts under the THAAD Advanced Capability Development contract awarded in 2012. The scope of work will be defined through separate task orders over the contract’s duration.

The THAAD system is designed to intercept short-, medium-, and intermediate-range ballistic missiles.