US Army awards Lockheed up to US$4.5 billion missiles contract

LOCKHEED Martin said on Monday (Apr 3) the US Army has awarded a multi-year production contract for Joint-Air-to-Ground Missiles (JAGM) and HELLFIRE missiles, in a deal that could go up to US$4.5 billion including follow-on awards.

The contract, which will have a total value of US$439 million in its first year, is among the first multi-year awards for precision munitions, as the Pentagon looks to build stocks in the hopes of deterring China.

In March, President Joe Biden requested US$842 billion for the Pentagon and US$44 billion for defence-related programmes at the Federal Bureau of Investigation, Department of Energy and other agencies. The 2024 budget proposal is US$28 billion more than last year’s US$858 billion.

Lockheed added the contract also offers three additional follow-on awards which will start in late 2023, allowing for a total contract value of up to US$4.5 billion over the next four years.

The JAGM programme anticipates a “significant increase” in international demand for the weapon system, Lockheed said. REUTERS