The U.S. Army has signed the largest contract in its history for the production of Patriot missiles, awarding Lockheed Martin a $9.8 billion agreement to manufacture nearly 2,000 PAC-3 Missile Segment Enhancement (MSE) interceptors through fiscal year 2026.
According to an Army release, the contract covers the procurement of 1,970 missiles “and associated hardware for U.S. and international partners.”
The deal is structured as a multi-year procurement, spanning fiscal years 2024 through 2026, and is intended to ensure predictable costs, faster delivery, and greater supply chain stability.
The PAC-3 MSE is a key element of U.S. and allied air and missile defense. It is designed to defeat tactical ballistic missiles, cruise missiles, hypersonic threats, and aircraft. The interceptor employs hit-to-kill technology, relying on kinetic energy rather than explosive warheads, to destroy incoming threats with high precision.
Maj. Gen. Frank Lozano, Program Executive Officer for Missiles and Space, highlighted the advantages of the multi-year approach. “Our procurements at PEO Missiles and Space are beneficial because they enable the Army to procure a larger quantity of missiles for more rapid delivery, thus filling our inventory faster,” Lozano said. “Plus, multi-year contracts mutually benefit both the government and our industry partners.”
Army officials emphasized that multi-year procurement contracts, which extend beyond a single fiscal year, are increasingly used for critical munitions. By securing long-term commitments, the Department of Defense provides industry with the stability to plan and allocate resources while ensuring consistent production of weapons that are in high demand.
Joseph Giunta Jr., senior contracting official for Army Contracting Command–Redstone Arsenal, said the award demonstrates careful planning and fiscal responsibility.
“This award takes advantage of a contract mechanism that allows us to achieve cost predictability and savings while strengthening the critical munitions supply chain and maximizing our operational efficiency,” Giunta stated. “It reflects disciplined acquisition and responsible stewardship of taxpayer resources, and I am proud of the dedicated contracting and acquisition professionals whose efforts made this achievement possible.”
The Army noted that the contract reflects a unified effort between PEO Missiles and Space and Army Contracting Command–Redstone Arsenal, underscoring their shared focus on mission readiness.
The PAC-3 MSE has become central to U.S. and allied defense architecture, especially as tactical ballistic missile and hypersonic threats proliferate. Its ability to engage multiple categories of threats has made it a preferred option not only for the Army but also for international customers. By procuring nearly 2,000 interceptors in a single contract, the Army intends to expand both domestic stockpiles and partner nation inventories.
A signing ceremony was held on September 3 at Lockheed Martin’s facility in Grand Prairie, Texas, to mark the award. Company officials joined Army leaders to commemorate the agreement, which will sustain production lines and provide stability across the industrial base.