US Air Force Signs a $3.2 Billion Contract for Lockheed Martin's JASSM and LRASM Missiles.

On September 27, 2024, Lockheed Martin secured a multiyear $3.2 billion contract from the US Air Force for the production of AGM-158C Long Range Anti-Ship Missiles (LRASM) and AGM-158B Joint Air-to-Surface Standoff Missiles (JASSM). This contract also includes foreign military sales (FMS) to Japan, the Netherlands, Finland, and Poland, as part of a Pentagon effort to maximize the production of key munitions through multiyear procurements.

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An F-35 Lightning II test pilot conducts flight test Sept. 9 to certify the carrier variant of the fighter aircraft for carrying the AGM-158C Long-Range Anti-Ship Missile (LRASM) (Picture source: US DoD)

In 2023, the Pentagon proposed using multiyear procurement authorities—usually reserved for ships or aircraft—to acquire munitions, with the aim of increasing industrial production capacity. Defense officials explained at the time that this initiative was intended to deter China and strengthen the US defense industrial base, while also addressing the need for arms to support Ukraine in its conflict with Russia.

The contract is part of a broader strategy called the "large lot procurement pilot program," designed to accelerate production. Lockheed Martin stated that this agreement would allow the company to increase the number of JASSM and LRASM missiles produced annually. The company also noted that multiyear procurement of critical munitions like JASSM and LRASM is a key measure to enhance industrial resilience and ensure that production can be ramped up more quickly.

The missiles will be manufactured at Lockheed Martin's facilities in Orlando, Florida, with the work expected to be completed by the end of July 2032. The US Air Force will provide $1.5 billion for missile production, along with an additional $2 million for operations and maintenance, while the US Navy will contribute $176 million. The Pentagon will allocate $752 million for foreign military sales under the contract.

The JASSM is a cruise missile designed to allow aircraft to strike ground targets while maintaining a safe distance from enemy air defenses or hostile aircraft. The LRASM, based on the JASSM design, is intended to penetrate enemy air defenses and destroy ships from a standoff range.

On the same day, the US State Department approved a potential sale to Australia of 100 Advanced Anti-Radiation Guided Missiles-Extended Range (AARGM-ER) and related equipment, valued at approximately $405 million. This sale, which aligns with US foreign policy and national security objectives, is intended to improve Australia's defense capabilities, a key ally in the Pacific region. The AARGM-ER missiles, manufactured by Northrop Grumman, will allow Australia to suppress or destroy land- or sea-based enemy radars, enhancing the survivability of allied aircraft in a conflict scenario.

In conclusion, this new multiyear contract reflects the Pentagon's strategy to optimize the production of critical munitions while bolstering the resilience of the US defense industrial base. Lockheed Martin is positioned to increase production of JASSM and LRASM missiles, which play a key role in US military strategies. Additionally, the sale of AARGM-ER missiles to Australia strengthens cooperation between the two countries in the Pacific region and enhances Canberra’s defense capabilities against potential threats.