The Missile Defense Agency released a pre-solicitation notice Friday asking for information from industry addressing a Medium Range Ballistic Missile (MRBM) with a 2,000 kilometer target and a 600 kilogram payload.

During a conference call with reporters yesterday, Lockheed Martin [LMT] Strategic and Missile Defense Systems President Salvatore Bruno said the company “intends” to bid on the program. Orbital Sciences [ORB], which builds small, medium and long-range target missiles, said late yesterday that it will also compete for the program.

The pre-solicitation notice, posted Friday on Federal Business Opportunities, says MDA expects a final request for proposals in March with a contract award in 2012. The requirement is for targets under a contract including cost-reimbursement and fixed price contract items, according to the notice.

MRBM requirements include development and manufacturing of MRBMs, integrated logistics support to include inventory storage and maintenance, pre- and post-mission analysis, launch preparation and execution and engineering services. The notice also says the targets will be air and ground-launch capable.

Bruno said Lockheed Martin has undergone a few cost-reduction measures to help in its competition for the MRBM contract, including what he calls “modular design” and “ship and shoot.”

“We broke up the target missile some of which to replicate certain threats,” Bruno said regarding modular design. “What this allows us to do is provide the most affordable target that only has the elements on it that are required, (which) allows us to build a certain amount of scale. (It’s) much less expensive.”

Regarding “ship and shoot,” Bruno said the traditional way a target missile gets put together is to have the final integration done at the launch site, which is usually far away from the factor and engineers and can lead to costly delays if there are any issues. “Ship and shoot” gets the target missile ready before it leaves for the launch site.

“We get it fully integrated and read to go in the factory and special designed support equipment,” Bruno said. “(It) allows you to build a little bit in advance.”

Separately, Lockheed Martin, as a consortium of five companies including Northrop Grumman [NOC], Raytheon [RTN], Boeing [BA], and General Dynamics [GD], was awarded Dec. 23 an estimated $980 million follow-on contract for the MDA’s Command, Control, Battle Management and Communications (C2BMC) program. The contractors will continue development, operations and sustainment work.