REDSTONE ARSENAL, Ala. —The Army has awarded Lockheed Martin Corp. a $53,859,843,289 modification to the PATRIOT Advance Capability-3 Production program contract. The award replaces the FY26 one-year undefinitized contract action with a seven-year UCA in support of the future fiscal year 2026-2032 multi-year procurement contract for PATRIOT Advanced Capability-3 Missile Segment Enhancement interceptors and increases the not-to-exceed ceiling to $58,620,843,289. No funds were obligated at the time of the award.
This modification, which establishes a seven-year UCA, supports the Army’s multiyear framework to establish the necessary demand signal to provide the prime contractor and their small-business sub vendors the predictable funding runway needed to confidently hire skilled labor, secure raw materials, and invest in advanced manufacturing facilities. Ultimately, this acquisition strategy enables a highly resilient, "warm" production line capable of rapidly scaling the delivery of critical PAC-3 MSE interceptors to U.S. and allied forces when and where they are needed most.
PAC-3 MSE is a vital component of the Army’s layered air and missile defense architecture, providing the capability to defeat a range of advanced aerial threats. Expanded production capacity ensures the Army is meeting operational demands while reinforcing the defense industrial base and supply chain that underpin readiness.
The award builds upon earlier framework agreements and undefinitized actions intended to accelerate PAC-3 MSE production under the Department’s Acquisition Transformation Strategy. Through continued partnership with industry, the Army is working to expand manufacturing throughput, strengthen munitions capacity and deliver proven capabilities to Soldiers at speed and scale.
The PAC-3 MSE is an advanced hit-to-kill interceptor employed within the PATRIOT weapon system. It is designed to counter tactical ballistic missiles, cruise missiles and aircraft and serves as a key element of the Army’s integrated air and missile defense mission. PAC-3 MSE provides enhanced range, altitude and overall performance compared with earlier variants of PATRIOT missiles and remains central to defending forces, strategic assets, and critical infrastructure.