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Lockheed Martin has signed a seven-year acquisition transformation agreement with the US Department of War. The agreement seeks to enhance production of Lockheed’s PAC-3 Missile Segment Enhancement (MSE) interceptors, increasing annual output from 600 to 2,000.
The Department of War’s (DOW) Acquisition Transformation Strategy backs the contract with Lockheed and is an initiative that will “eliminate wasteful spending, reform the acquisition process and modernise inefficient defence contracts”, according to the DOW.
As well as increasing annual output and capacity, the agreement will see both parties share any additional profits that the new equipment and volume may bring. The DOW also pointed to “multiple munitions procurement contracts” signing throughout the year.
“This first-of-its-kind approach builds on years of advocacy and collaboration to bring commercial practices to major acquisition programs,” said Jim Taiclet, Lockheed Martin’s CEO, chairman and president.
“We will create unprecedented capacity for PAC-3 MSE production, delivering at the speed our nation and allies demand while providing value for taxpayers and our shareholders.”
The agreement is a further reflection of the increasing global demand, with the deal meeting not only the needs of the US military but that of allies and global partners also. Lockheed Martin said this will help create thousands of jobs across the supply chain.
“This framework agreement marks a fundamental shift in how we rapidly expand munitions production and magazine depth, and how we collaborate with our industry partners,” said US Under Secretary of War for Acquisition and Sustainment Michael Duffey.
“Lockheed Martin’s willingness to help pioneer this transformative acquisition model is a win-win for the taxpayer, our national security and the rebuilding of the industrial base needed for the arsenal of freedom.”
The Pac-3 MSE has increased manoeuvrability, high precision and a dual-pulse solid rocket motor to increase range.
