REDSTONE ARSENAL, Ala. - The U.S. Army's Program Executive Office Missiles and Space, in coordination with Army Contracting Command-Redstone Arsenal, has definitized the Undefinitized Contract Action for a multi-year contract supporting production of the Patriot Advanced Capability-3 Missile Segment Enhancement system.

The $9.8 billion contract, awarded to Lockheed Martin Missiles and Fire Control, covers fiscal years 2024 through 2026. It includes procurement of 1,970 PAC-3 MSE missiles and associated hardware for U.S. and international partners.

Multi-year procurement contracts are used by the Department of Defense to secure goods and services beyond a single fiscal year. These agreements allow for incremental funding subject to annual appropriations and offer long-term stability for suppliers, improving planning and resource allocation.

"Our procurements at PEO Missiles and Space are beneficial because they enable the Army to procure a larger quantity of missiles for more rapid delivery, thus filling our inventory faster," said Maj. Gen. Frank Lozano, Program Executive Office Missiles and Space. "Plus, multi-year contracts mutually benefit both the government and our industry partners," he added.

The PAC-3 MSE uses hit-to-kill technology to intercept threats with greater kinetic energy than traditional blast-fragmentation methods. It is designed to counter tactical ballistic missiles, cruise missiles, hypersonic threats and aircraft.

This award takes advantage of a contract mechanism that allows us to achieve cost predictability and savings while strengthening the critical munitions supply chain and maximizing our operational efficiency," said Joseph Giunta Jr., senior contracting official for Army Contracting Command-Redstone Arsenal. "It reflects disciplined acquisition and responsible stewardship of taxpayer resources, and I am proud of the dedicated contracting and acquisition professionals whose efforts made this achievement possible."

The contract award reflects a unified effort between PEO Missiles and Space and Army Contracting Command-Redstone Arsenal, underscoring their shared commitment to mission success.

A signing ceremony was held Sept. 3 at Lockheed Martin in Grand Prairie, Texas, to commemorate the multi-year contract award.