The Missile Defense Agency (MDA) on Friday awarded Lockheed Martin [LMT] another $1.47 billion modification to procure Terminal High Altitude Area Defense (THAAD) interceptor support items for Foreign Military Sales (FMS) to Saudi Arabia.
The July 19 contract increases the total contract value from $3.89 billion to $5.36 billion total. The performance period will last from this month through July 2023.
Saudi funds of $341 million were obligated at award time. The announcement said one offer was solicited and one offer received.
This is part of the $110 billion defense sale announced in May 2017 (Defense Daily, May 19, 2017).
Later that year, the State Department approved the FMS of THAAD to the Saudis. The request included 44 launchers, 360 interceptors, 16 fire control and communications moblile tactical station groups, and seven Raytheon [RTN] AN/TPY-2 radars (Defense Daily, Oct. 6, 2017).
While Lockheed Martin builds the system and interceptors, Raytheon provides radars and sensors used by THAAD.
This latest modification comes after MDA awarded Raytheon a $399 million contract to provide support for Saudi THAAD sensor and radar systems in April (Defense Daily, April 26). Earlier in April, MDA awarded Lockheed Martin a $2.46 billion modification to build THAAD interceptors for the U.S. and Saudi Arabia, raising the contract value at that point to almost $4 billion (Defense Daily, April 1).
Lockheed Martin received the first part of the Saudi THAAD award in March in a $946 million contract (Defense Daily, March 5).