The U.S. Department of Defense has finalized seven-year contracts totaling $1.2 billion with General Dynamics Ordnance and Tactical Systems and Lockheed Martin to boost domestic missile production.
The agreements aim to increase output and expedite delivery schedules for critical missile subcomponents under two key interceptor programs: the Terminal High Altitude Area Defense system and the Patriot Advanced Capability-3 Missile Segment Enhancement. The Pentagon said the contracts will enhance supply chain resilience and support long-term defense readiness.
General Dynamics and Lockheed Martin will each receive multiyear awards, though specific contract values per company were not disclosed. The awards follow a broader Pentagon initiative to accelerate procurement of missile defense systems amid rising global tensions and heightened demand for interceptors.
The THAAD system, designed to intercept ballistic missiles in their terminal phase, and the PAC-3 MSE, an advanced variant of the Patriot missile system, are central to U.S. missile defense architecture. Both systems have seen increased deployment in recent years, including in Europe and the Indo-Pacific region.
The contracts were announced in Washington on August 31.
