Lockheed Martin Awarded $933 Million for THAAD Interceptors

Lockheed Martin Missiles and Fire Control is being awarded a contract modification, worth around $933 million, from the U.S. Missile Defense Agency (MDA) for Terminal High Altitude Area Defense (THAAD) interceptors.

This modification (P00026) is to exercise an option for the production of THAAD interceptors and associated one-shot devices to support the U.S. government (USG) and the Kingdom of Saudi Arabia (KSA) Foreign Military Sales (FMS) case requirements.

The THAAD interceptors and associated one-shot devices will be procured under fixed-price incentive (firm target) contract line items. Fiscal 2020 USG procurement funds in the amount of around $327.5 million; and KSA FMS funds in the amount of $605 million are being obligated at the time of the award.

The value of this contract (HQ0147-17-C-0032) is increased from around $5.4 billion to around $6.3 billion.

The work will be performed in Dallas, Texas; Sunnyvale, California; Huntsville, Alabama; Camden, Arkansas; and Troy, Alabama, with an expected completion date of April 1, 2026.

THAAD is an American anti-ballistic missile (ABM) system designed to shoot down short-, medium-, and intermediate-range ballistic missiles (SRBMs, MRBM and IRBMs) in their terminal phase (descent or reentry) by intercepting with a hit-to-kill (using just kinetic force without warhead) approach.

The THAAD system is an integral part of the MDA’s mission to field an integrated, layered, Ballistic Missile Defense System (BMDS). Its high-altitude intercept capability mitigates the effects of enemy weapons before they reach the ground, and its non-explosive kinetic impact minimizes the risk of detonation.

Saudi Arabia and the U.S. entered formal discussions for THAAD missile system in December 2016. The U.S. State Department approved the sale under the U.S. Foreign Military Sale (FMS) route in October 2017 following the Saudi Arabian request for 44 THAAD launchers, 360 THAAD Interceptor Missiles, 16 THAAD Fire Control and Communications Mobile Tactical Station Group and 7 AN/TPY-2 THAAD radars.

The THAAD procurement will substantially increase Saudi Arabia’s capability to defend itself against the growing ballistic missile threat in the region.  THAAD’s exo-atmospheric, hit-to-kill capability will add an upper-tier to Saudi Arabia’s layered missile defense architecture and will support modernization of the Royal Saudi Air Defense Force (RSADF).

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