Lockheed Martin: $2.5 billion contract to produce THAAD missile systems for Saudi Arabia.

Lockheed Martin Corp. Missiles and Fire Control, Dallas, Texas, is being awarded a $2,457,390,566 modification (P00015) to a previously-awarded contract HQ0147-17-C-0032 for the production of Terminal High Altitude Area Defense (THAAD) interceptors and associated one-shot devices to support the U.S. government (USG) and the Kingdom of Saudi Arabia (KSA) Foreign Military Sales (FMS) case requirements.

A U.S. Army Terminal High Altitude Area Defense launching station sits at the ready in Israel, March 4, 2019. (Picture source U.S. DoD)

In October 2017, the U.S. State Department has made a determination approving a possible Foreign Military Sale to the Government of Saudi Arabia for Terminal High Altitude Area Defense (THAAD) and related support, equipment and services for an estimated cost of $15 billion.

The Government of Saudi Arabia has requested a possible sale of forty-four (44) Terminal High Altitude Area Defense (THAAD) launchers, three hundred sixty (360) THAAD Interceptor Missiles, sixteen (16) THAAD Fire Control and Communications Mobile Tactical Station Group, seven (7) AN/TPY-2 THAAD radars. Also included are THAAD Battery maintenance equipment, forty-three (43) prime movers (trucks), generators, electrical power units, trailers, communications equipment, tools, test and maintenance equipment, repair and return, system integration and checkout, spare/repair parts, publications and technical documentation, personnel training and training equipment, U.S. Government and contractor technical and logistics personnel support services, facilities construction, studies, and other related elements of logistics and program support.

The THAAD system is being designed, built, and integrated by Lockheed Martin Missiles and Fire Control acting as prime contractor. Key subcontractors include Raytheon, Boeing, Aerojet Rocketdyne, Honeywell, BAE Systems, Oshkosh Defense, and MiltonCAT.

The THAAD, formerly Theater High Altitude Area Defense, is an American anti-ballistic missile defense system designed to shoot down short-, medium-, and intermediate-range ballistic missiles in their terminal phase (descent or reentry) by intercepting with a hit-to-kill approach. It has a maximum firing of 200 km at an altitude of up to 150 km.