{"id":31878,"date":"2026-04-10T19:02:09","date_gmt":"2026-04-10T19:02:09","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2026\/04\/10\/pentagon-lockheed-martin-agree-to-47-billion-pac-3-interceptor-deal\/"},"modified":"2026-08-08T17:06:04","modified_gmt":"2026-08-08T17:06:04","slug":"pentagon-lockheed-martin-agree-to-47-billion-pac-3-interceptor-deal","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/defense\/2026\/04\/10\/pentagon-lockheed-martin-agree-to-47-billion-pac-3-interceptor-deal\/","title":{"rendered":"Pentagon, Lockheed Martin agree to $4.7 billion PAC-3 interceptor deal"},"content":{"rendered":"\n

The Pentagon has agreed to terms with Lockheed Martin<\/a> on a $4.7 billion contract for the defense giant<\/a> to accelerate production of its Patriot Advanced Capability-3 Missile Segment Enhancement interceptor<\/a>. <\/p>\n\n\n\n

The contract, which follows a framework agreement announced in January, will allow Lockheed<\/a> to \u201cdeliver record numbers of combat-proven interceptors for American and allied forces this year,\u201d the company announced Friday<\/a>. <\/p>\n\n\n\n

\u201cOur investments in our facilities, workforce and supply chain ensure we can deliver at scale and with speed,\u201d Tim Cahill, president of Lockheed Martin Missiles and Fire Control, said in a release. \u201cWith the right tools, proven processes and skilled employees in place, we are positioned to deliver a record number of munitions in support of the warfighter and our allies.\u201d<\/p>\n\n\n\n

The PAC-3 Missile Segment Enhancement works by identifying and tracking a range of threats \u2014 using Boeing-made PAC-3 seekers \u2014 from ballistic missiles and hypersonics to hostile air platforms.<\/p>\n\n\n\n

Once the seeker identifies the target, the highly maneuverable all-up interceptor round, which uses a two-pulse solid rocket motor, engages and eliminates threats via direct body-to-body contact.<\/p>\n\n\n\n

Boeing earlier this month announced it had reached a framework agreement with the Defense Department to triple production of its PAC-3 seekers. <\/p>\n\n\n\n

Lockheed\u2019s framework agreement announced in January included a target of increasing annual PAC-3 interceptor production from approximately 600 to 2,000 over a span of seven years.<\/p>\n\n\n\n

Recent contract announcements come as the U.S. military\u2019s reliance on costly interceptors<\/a> against cheap munitions, particularly those deployed by Iran during Operation Epic Fury, has come under increased scrutiny<\/a>.<\/p>\n\n\n\n

Contrast the $35,000 average cost of an Iranian Shahed drone with an estimated $4 million price tag of a PAC-3, and the cost exchange, if successfully engaged, is 114-1 in favor of Iran.<\/p>\n\n\n\n

Despite the lopsided cost exchange, the Pentagon in March also announced a deal<\/a> with BAE Systems and Lockheed Martin<\/a> to quadruple production of infrared seekers for the Terminal High Altitude Area Defense<\/a> interceptor.<\/p>\n\n\n\n

That deal aligns with a contract agreement in January<\/a> between the Pentagon and Lockheed to quadruple the company\u2019s annual production of THAAD interceptors from 96 to 400.<\/p>\n","protected":false},"excerpt":{"rendered":"

Lockheed in January\u00a0discussed a target of increasing annual PAC-3 interceptor production from approximately 600 to 2,000 over a span of seven years.<\/p>\n","protected":false},"author":7,"featured_media":111209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":35,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[35,31],"tags":[],"coauthors":[3358],"class_list":["post-31878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-defense","category-home"],"acf":{"subheadline":"","legacy_arc_id":"55WCRIBV5ZHZTHBO2WSRPQN7UM","arc_canonical_url":"\/industry\/techwatch\/2026\/04\/10\/pentagon-lockheed-martin-agree-to-47-billion-pac-3-interceptor-deal\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"\nPentagon, Lockheed Martin agree to $4.7 billion PAC-3 interceptor deal - Federal Times<\/title>\n<meta name=\"description\" content=\"Lockheed in January\u00a0discussed a target of increasing annual PAC-3 interceptor production from approximately 600 to 2,000 over a span of seven years.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pentagon, Lockheed Martin agree to $4.7 billion PAC-3 interceptor deal\" \/>\n<meta property=\"og:description\" content=\"Lockheed in January\u00a0discussed a target of increasing annual PAC-3 interceptor production from approximately 600 to 2,000 over a span of seven years.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/one.sightlinemg.com\/federaltimes\/defense\/2026\/04\/10\/pentagon-lockheed-martin-agree-to-47-billion-pac-3-interceptor-deal\/\" \/>\n<meta property=\"og:site_name\" content=\"Federal Times\" \/>\n<meta property=\"article:published_time\" content=\"2026-04-10T19:02:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-08T17:06:04+00:00\" \/>\n<meta name=\"author\" content=\"J.D. 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