The U.S. Department of Defense has announced on 1 April that largest weapons supplier, Lockheed Martin Corp. is being awarded a modification to a previously-awarded contract for the production of Terminal High Altitude Area Defense (THAAD) interceptors.

The contract modification, announced Monday by the Department of Defense, is worth more than $2,4 billion and covers 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.

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The value of this contract is increased from $1,4 to $3,8 billion.

The Department of Defense noted that: “One offer was solicited with one offer received. 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.”

The THAAD element provides a globally-transportable, rapidly-deployable capability to intercept ballistic missiles inside or outside the atmosphere during their final, or terminal, phase of flight. THAAD is strictly a defensive weapon system. The system uses hit-to-kill technology where kinetic energy destroys the incoming target.

The THAAD system is a key element of the Ballistic Missile Defense System (BMDS). The system defends U.S.troops, allied forces, population centers and critical infrastructure against short and medium-range ballistic missiles.

Each THAAD system is comprised of five major components: interceptors, launchers, a radar, a fire control unit, and support equipment. THAAD is managed by the Missile Defense Agency; Lockheed Martin serves as the prime contractor and systems integrator; and the THAAD system is operated by the U.S. Army.