Lockheed Martin was awarded a $4.5 billion missile contract by the US Army

Lockheed Martin has received a contract from the U.S. Army for a multi-year production contract for Joint Air-to-Ground Missiles (JAGM) and Hellfire missiles, with a program year 1 (PY1) award totaling $439 million.

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The purpose of this contract is to provide procurement and production support for JAGM and HELLFIRE to the U.S. Army and international customers. Since the contract is a multi-year award, there are three additional follow-on awards available beginning late in 2023, allowing an overall contract value of up to $4.5 billion over the next four years.

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It is not just that this contract award supports sustained production, it is also the first joint production contract awarded by the U.S. government for JAGM and HELLFIRE," said Joey Drake, the program management director for Air-to-Ground Missile Systems at Lockheed Martin Missiles and Fire Control. "The award of this contract, along with last year's decision to increase JAGM production, shows the Army's confidence in the effectiveness of our product's combat capabilities and its defensive capabilities, including its potential for longevity as a result of increased production support."

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With the award of this contract, HELLFIRE and JAGM will be able to procure these systems for a variety of domestic and international customers at the same time, allowing both companies to expand their global footprints in the future. As a result of the program, it is expected that the demand for the weapon system will increase significantly in the international market. There are currently more than 30 FMS customers who use Hellfire, along with HELLFIRE being integrated into more than 15 platforms at the moment.

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"Both HELLFIRE and JAGM have advanced defensive capabilities, which allows users to remain ahead of the curve with a competitive edge against potential adversaries by using either one of these products. With the signing of this contract, we will be able to continue to provide our customers with these solutions for many years to come," adds Drake.

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It is said that both the JAGM system and the HELLFIRE system were designed and developed in Orlando, Florida. In addition to Dallas, Lockheed Martin manufactures the weapon systems at a number of its facilities in Orlando, FL, Ocala, FL, Archbald, PA, and Troy, AL. More than 125,000 missiles have been produced so far, and JAGM and HELLFIRE continue to be the weapons of choice when a critical engagement opportunity requires precision.