Lockheed Martin receives another $553M for THAAD

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Lockheed Martin receives another $553M for THAAD
The Pentagon more than tripled the value of a contract with Lockheed for production of interceptors, one-shot devices and other support of the missile defense system.

By James LaPorta
Dec. 26, 2017

(UPI) -- Lockheed Martin has been awarded a modified contract by the U.S. Missile Defense Agency that is more than triple its original value for production of the Terminal High Altitude Area Defense, or THAAD, missile defense system.

The contract, announced on Friday by the Pentagon, is worth more than $826.6 million under a modification to a previous contract in order to definitize the former classification of an undefinitized contract action.

Friday's modification increased the overall value of the contract between Lockheed Martin and the Missile Defense Agency by more than $553.1 million from its original value of $273.4 million, the Pentagon said.

The THAAD anti-ballistic missile defense system is part of the Terminal Defense Segment of the Ballistic Missile Defense System. It's primarily used for shooting down multiple range ballistic missiles while in their terminal phase -- descent or reentry -- by intercepting with a hit-to-kill approach, according to the Defense Advanced Research Projects Agency.

Additionally, the modified contract includes more than $459.2 million option for Lot 10 interceptors and one-shot devices.

A fixed-price-incentive firm target contract identifies a target cost, target profit, and price ceiling that the U.S. government is willing to pay for procurement. These types of contracts, however, do not establish a profit ceiling or floor -- these factors are negotiated at the time of contract inception.

An unclassified March 2017 report from the Defense Department for fiscal year 2017 appropriation requests states that in fiscal year 2015, the THAAD Project Office instituted a new strategy for procuring Interceptors.

Through "synergy" lot buying, an award contract now includes an option for the following fiscal year, which the office states will "achieve savings in material costs in multiple fiscal years," resulting in higher Interceptor quantity purchases at a lower average unit price.

Work on the contract will occur in multiple U.S. states, and is expected to be completed in December 2020.

More than $127.5 million from fiscal 2017 procurement funds have already been payed to Lockheed Martin under the previous award contract. The company is expected to receive more than $699 million from fiscal 2017 and 2018 procurement funds at the time of award.

https://www.upi.com/Defense-News/2017/12/26/Lockheed-Martin-receives-another-553M-for-THAAD/4871514310122/?nll=1
 

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Lockheed Martin Receives $459 Million THAAD Interceptor Contract

DALLAS, Jan. 26, 2018 /PRNewswire/ -- The Missile Defense Agency (MDA) has awarded Lockheed Martin (NYSE: LMT) a $459 million contract modification for production and delivery of interceptors for the Terminal High Altitude Area Defense (THAAD) weapon system. The modification brings the total contract value to $1.28 billion with funding provided in 2017 and 2018. The new interceptors support U.S. Army THAAD units and growing operational requirements.

THAAD is a key element of the Ballistic Missile Defense System (BMDS), and is highly effective at protecting America's military, allied forces, citizen population centers and critical infrastructure from short-, medium- and intermediate-range ballistic missile attacks.

"The THAAD system's capability and reliability have been demonstrated with 15 out of 15 hit-to-kill intercepts dating back to 1999, and by exceeding readiness rates currently being experienced in the field with operationally deployed batteries," said Richard McDaniel, Lockheed Martin's vice president for the THAAD system.

"THAAD interceptors defeat dangerous missile threats our troops and allies are facing today, and have capability against advancing future threats. Our focus on affordability, coupled with efficiencies of increased volume, is providing significant cost-savings opportunities to meet growing demand from the U.S. and allies around the globe," he said.

THAAD employs Lockheed Martin's proven "hit-to-kill" technology. The system is rapidly deployable, mobile, and is interoperable with all other BMDS elements, including Patriot/PAC-3, Aegis, forward-based sensors and the Command, Control, Battle Management and Communications system. These unique capabilities make THAAD an important addition to integrated air and missile defense architectures around the world.

The U.S. Army activated the seventh THAAD battery in December 2016. Lockheed Martin delivered the 200th THAAD interceptor in September of 2017. The United Arab Emirates was the first international partner to procure THAAD with a contract awarded in 2011.

https://news.lockheedmartin.com/2018-01-26-Lockheed-Martin-Receives-459-Million-THAAD-Interceptor-Contract#assets_20295_128384-117
 

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Army taps Lockheed for 10 more THAAD interceptors
By James LaPorta | Jan. 29, 2018



A Terminal High Altitude Area Defense, or THAAD, weapon system assigned to Task Force Talon, 94th Army Air and Missile Defense Command. Photo by Army Capt. Adan Cazarez/U.S. Army

Jan. 29 (UPI) -- The U.S. Missile Defense Agency has awarded Lockheed Martin a contract for 10 additional Lot 10 Terminal High Altitude Area Defense, or THAAD, interceptors for the U.S. Army.

The deal, announced Friday by the Department of Defense, is valued at more than $459.2 million under a modified fixed-price incentive-firm target contract for line item numbers.

Friday's award is the second modification to the contract with Lockheed, which in December received a $553 billion modification for Lot 9 and Lot 10 THAAD systems. The new modification -- the exercising of a $459.2 million option for more systems -- brings the total value of the contract up to $1.2 billion.

THAAD interceptors are Lockheed-designed anti-ballistic missile defense systems used to target a range of incoming ballistic missiles while in their terminal phase, the portion of a ballistic missile's descent to reenter Earth's atmosphere or as it approaches a target.

"The THAAD system's capability and reliability have been demonstrated with 15 out of 15 hit-to-kill intercepts dating back to 1999, and by exceeding readiness rates currently being experienced in the field with operationally deployed batteries," Richard McDaniel, Lockheed Martin's vice president for the THAAD system, said in a press release.

"THAAD interceptors defeat dangerous missile threats our troops and allies are facing today, and have capability against advancing future threats. Our focus on affordability, coupled with efficiencies of increased volume, is providing significant cost-savings opportunities to meet growing demand from the U.S. and allies around the globe," McDaniel said.

The 10 additional interceptors are for use by Army THAAD units and other operational requirements, Lockheed said.

More than $459.2 million from fiscal 2018 procurement funds has been obligated to Lockheed at the time of award. Work on the new contract will occur in Texas, California, Alabama and Arkansas, and is expected to be completed by June 2021.

https://www.upi.com/Defense-News/2018/01/29/Army-taps-Lockheed-for-10-more-THAAD-interceptors/3371517233168/?nll=1
 

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