Under a $66 million contract, MEADS International will incorporate the Lockheed Martin [LMT] PAC-3 Missile Segment Enhancement (MSE) Missile as the basic interceptor for the U.S., German and Italian Medium Extended Air Defense System (MEADS) program.

The NATO Medium Extended Air Defense System (MEADS) Management Agency awarded the contract to MI, which consists of MBDA in Italy, LFK in Germany and Lockheed Martin.

The new interceptor uses more responsive control surfaces and a more powerful motor to increase the system’s range and lethality over the baseline PAC-3 missile, which was selected as the primary missile for MEADS when the design and development program began in 2004. The PAC-3 missile is also produced by Lockheed Martin.

“The PAC-3 MSE Missile provides MEADS with significant performance benefits,” Jim Cravens, president of MI, said. “With added thrust and its ability to handle more sophisticated threat missiles, it offers extended reach and protection for the soldiers and airmen who defend us.”

MEADS is a mobile air and missile defense system being developed to replace Patriot systems in the United States and Nike Hercules systems in Italy and to supplement Patriot systems in Germany.

“Changing the baseline interceptor during our Preliminary Design Review keeps risk to a minimum and keeps us on track to provide the three nations with the 21st century air and missile defense system they have requested,” Claudio Ponzi, MI technical director, said.

The MEADS Steering Committee, composed of one government representative from each of the participating nations, recommended the change following submittal of a study by MI that identified the design effects and benefits of adopting the PAC-3 MSE Missile.

“Our study assessed the principal technical, schedule, cost, contract and program implications of integrating the PAC-3 MSE missile into MEADS,” Axel Widera, MEADS International vice president, said. “We found that each of these issues could be managed and that the MSE would be a worthwhile change for the safety of our troops.”

MEADS will incorporate the hit-to-kill PAC-3 MSE missile in a system that includes 360-degree surveillance and fire control sensors, netted-distributed battle management/communication centers and high-firepower launchers. The system will combine superior battlefield protection with extensive flexibility, allowing it to protect forces and to provide selected critical assets for homeland defense against tactical ballistic missiles, cruise missiles, unmanned aerial vehicles and aircraft.

When completed, MEADS will be the only air and missile defense system able to roll off tactical transports with the troops and begin operations almost immediately. More importantly, its open architecture will provide for 21st century air and missile defense system-of-system integration capabilities that allow operational mission-tailoring for homeland defense or defense of maneuver forces. MEADS is intended to provide significant operation and support cost savings.

In May 2005, MI signed a definitized contract valued at $4 billion for the program’s design and development.

The United States funds 58 percent of the MEADS program; Germany provides 25 percent and Italy funds 17 percent.