Department of War Boosts PAC-3 MSE Production with Lockheed Martin Partnership

The Department of War (DoW) has taken a significant step forward in enhancing munitions production by partnering with Lockheed Martin. A newly signed framework agreement introduces an innovative acquisition model aimed at boosting the production of the PAC-3 Missile Segment Enhancement (MSE) interceptor.

Strategic Partnership and Long-Term Goals

This seven-year agreement is a key part of the Department’s Acquisition Transformation Strategy, as outlined by Secretary of War Pete Hegseth during his Arsenal of Freedom speech at Fort McNair in November. The strategy aims to stabilize demand signals by offering companies larger, longer contracts. This approach encourages manufacturers to invest in growing their industrial base, ensuring more efficient weapon system production.

Production Increase and Capacity Alignment

• Lockheed Martin will scale the production of PAC-3 MSE from approximately 600 to 2,000 interceptors annually.
• The agreement aims to meet the rising demand from U.S. forces, allies, and partner nations.
• It includes plans for a future seven-year supply contract, pending Congressional approval.

Michael Duffey, Under Secretary of War for Acquisition and Sustainment, emphasized that this initiative represents a crucial shift in munitions production. The collaborative efforts with Lockheed Martin ensure benefits for taxpayers and enhance national security.

Accountability and Supply Chain Enhancements

The framework agreement includes stringent delivery accountability measures. Both the Department of War and Lockheed Martin will share any increased profits resulting from efficiencies in production and new equipment. This strategy extends beyond the PAC-3 MSE to multiple munitions procurement contracts within the coming year, aiming to replenish military stockpiles and strengthen the defense industrial base.

The DoW acknowledges the necessity of enhancing supply chains to facilitate these production increases. Key suppliers of the PAC-3 MSE will receive seven-year subcontracts as part of this strategy, ensuring that they can meet growing component demands.

Supportive Councils and Future Directions

This agreement aligns with the Department’s Munitions Acceleration Council, which was formed to swiftly eliminate barriers to scaling production. The Council works to convert urgent operational demands into actionable, long-term industrial capacity plans.

In conclusion, the partnership between the Department of War and Lockheed Martin marks a pivotal moment in U.S. defense strategy, focusing on long-term, efficient munitions production to safeguard national interests.