The Pentagon announced recently that Lockheed Martin [LMT] will supply two Terminal High Altitude Area Defense Weapon Systems (THAAD) to the United Arab Emirates.

The sole source contract was valued at $1.9 billion and will last through June 2016. The Pentagon’s Missile Defense Agency is the contracting authority under the Foreign Military Sale (FMS).

THAAD is designed to be globally transportable to intercept and and take out ballistic missiles during their final phase of flight.