Lockheed Martin wins potential $4.5B Army missiles contract

The Army has awarded Lockheed Martin a multiyear contract to build missiles critical to deterring Russia and China, a deal that could reach $4.5 billion over the next four years, the company announced on Monday.

The contract, which is worth $439 million for the first year, is to build Joint-Air-to-Ground Missiles (JAGM) and Hellfire missiles, the latter of which have been sent to Ukraine to help in its fight against Russia. 

In a statement, Lockheed said the deal offers three additional follow-on awards starting in late 2023, “allowing for a total contract value of up to $4.5 billion over the next four years.” 

The company did not say how many of each weapon it will build. 

The award is one of the Pentagon’s first multiyear deals for guided munitions as it seeks to rebuild weapons stockpiles following mass shipments of munitions to Ukraine and in the face of a more aggressive China.  

The fiscal 2023 National Defense Authorization Act, signed into law late last year, gives the military flexibility with such agreements, allowing new multiyear procurement authority for certain munitions including JAGM.  

The contracts are meant to give manufacturers in the defense industry long-term stability and prevent lag times on production.  

JAGM, meant to eventually replace the Hellfire, last year got Army approval for full-rate production. Both munitions are developed in Orlando, Fla., and built at facilities in Texas, Florida, Pennsylvania and Alabama.