Lockheed wins $1.09 billion contract for Patriot PAC-3 missiles
WASHINGTON (Reuters) - Lockheed Martin Corp (LMT.N: Quote) has won a U.S. Army contract worth $1.09 billion to build PAC-3 missiles for the U.S. Army, South Korea, Qatar and Saudi Arabia for use in Raytheon Co's (RTN.N: Quote) Patriot missile defense system, the Pentagon said Monday.
The contract runs through June 30, 2019, the U.S. Defense Department said in its daily digest of major arms contracts.
Lockheed, the Pentagon's No. 1 supplier, said the contract includes Patriot Advanced Capability-3 (PAC-3) missiles and PAC-3 Missile Segment Enhancement (MSE) missiles for the U.S. Army, as well as PAC-3 missiles for the other countries.
Lockheed won a similar contract valued at $1.5 billion in July.
The Pentagon's Defense Security Cooperation Agency announced the possible sale of up to $1.75 billion in PAC-3 missiles and associated equipment to Saudi Arabia last October, followed by another deal valued at up to $5.4 billion for more missiles in July.
The U.S. government approved PAC-3 missile sales worth up to $1.41 billion with South Korea in November 2014, and the sale to Qatar of PAC-3 missiles in November 2012.
Other countries that have ordered the Lockheed missile include the United States, the Netherlands, Germany, Japan, the United Arab Emirates, Taiwan and Kuwait.
Scott Arnold, Lockheed's vice president of PAC-3 programs, welcomed the news and said the company's missile defense interceptors utilized advanced technology that enabled "better accuracy, enhanced safety and improved reliability when it matters most.”
The PAC-3 Missile is a high-velocity interceptor that defends against incoming threats including tactical ballistic missiles, cruise missiles and aircraft. Continued...