Lockheed Martin has signed a landmark seven-year framework agreement with the U.S. Department of War to accelerate PAC-3 Missile Segment Enhancement (MSE) interceptor production from 600 to approximately 2,000 units per year. This deal, announced January 6, 2026, marks the first application of the Department’s new Acquisition Transformation Strategy, enabling rapid scaling to meet surging demand from U.S. forces, allies, and partners.
The agreement positions Lockheed Martin to more than triple output at its Camden, Arkansas facility, building on a 60% production increase over the past two years and 620 deliveries in 2025. Both parties will share cost savings from volume efficiencies, new equipment investments, and long-term demand certainty, while enforcing strict delivery accountability.
This expansion strengthens U.S. defense industrial base resilience amid global threats, adding thousands of jobs across the supply chain. It follows a $9.8 billion U.S. Army multiyear contract awarded in September 2025 for nearly 2,000 PAC-3 MSE interceptors.
Initial contract award awaits final fiscal year 2026 Congressional appropriations, with the framework advancing munitions stockpiling and procurement reforms across multiple programs.