Lockheed Martin [LMT] yesterday said it received a $66 million follow-on contract from the Missile Defense Agency (MDA) to continue development of the Terminal High Altitude Area Defense (THAAD) Weapon System.

The contract, an Advanced Capability Development contract, is a five-year, indefinite delivery/indefinite quantity (IDIQ) award.

The initial task order provides three years of engineering technical services including flight test planning, maintenance of lab capability and executing Ballistic Missile Defense System studies and threat assessments.

“With the successful completion of the Engineering and Manufacturing Development program anticipated later this year, this ACD contract allows Lockheed Martin to continue required upgrades to the weapon system and support increasingly difficult flight test missions,” said Mat Joyce, Lockheed Martin THAAD vice president and program manager.

Dennis Cavin, vice president–International Air and Missile Defense Strategic Initiatives for Lockheed Martin, said in February THAAD received a conditional materiel release from the Army Aviation and Missile Life Cycle Management Command (AMCOM) for Fire Units 1 and 2.

The AMCOM material release process is rigorous and fully examines a weapon system’s readiness prior to the weapon system exiting the development phase and being released for use by the warfighter.

This year, there will be two operational THAAD batteries, and production has begun on Batteries 3 and 4.

MDA plans to demonstrate integrated layered regional defense, Cavin said, briefing reporters at the annual AIAA missile defense conference in Washington, D.C.

This demonstration will be the “largest, most complex missile defense test ever attempted,” MDA Director Army Lt. Gen. Patrick O’Reilly told the House Armed Services Committee March 6.

“We will simultaneously engage up to five air and ballistic missile targets with an Aegis, THAAD, Patriot and Forward Based Mode AN/TPY-2 radar integrated C2BMC system operated by soldiers, sailors and airmen from multiple combatant commands,” O’Reilly said.

In October, THAAD successfully detected, tracked and destroyed two targets simultaneously in an initial operational test and evaluation test: a short range and a medium range ballistic missile.

The test aims to aide warfighters in refining operational doctrine and tactics while offering them confidence in the execution of their integrated air and missile defense plans.

Additionally, Lockheed Martin will deliver THAAD to the United Arab Emirates, the first international sale for the system. The company expects “multiple” countries to enter into discussions about procuring the system, Cavin said.