By Ann Roosevelt
Lockheed Martin [LMT] yesterday said it received a $789.8 million production contract to produce the Terminal High Altitude Area Defense (THAAD) Weapon System for the Missile Defense Agency (MDA).
The contract includes $694.9 million for the production of 48 THAAD interceptors, six THAAD launchers, four fire control units and additional support equipment. Another $94.8 million is an option for additional launchers for the total value of $789.8 million.
These components will be employed by Army THAAD Batteries 3 and 4. The deliveries will be completed in 2013.
“We have great confidence in the production plans established to deliver the THAAD weapon system to the warfighter as soon as possible,” said Tom McGrath, vice president and program manager for THAAD at Lockheed Martin. “Lockheed Martin remains focused on ensuring THAAD is reliable, affordable and effective.”
Recently, the MDA director said the agency does not plan to pursue THAAD in an extended range version (Defense Daily, March 28). Last year, the agency conducted a business-case analysis on the next-generation system proposed by Lockheed Martin, and based on that study, the government decided not to go ahead, said Army Lt. Gen. Patrick O’Reilly at a recent missile defense conference.
Additionally, an extended range THAAD would not provide the agency with the ability to expand the number of simultaneous shoot-downs possible with its missile defense architecture as a whole. As the Pentagon fleshes out its architecture, one of the main goals is to add “multiple shot opportunities,” he said.
A March 2011 Government Accountability Office (GAO) report said in fiscal year 2010 the THAAD program completed ground component deliveries for THAAD Battery 1 and 2, and a successful flight test proved the objective software for the batteries. As well, the program successfully completed qualification on the interceptor ignition safety system.
However, the report (GAO-11-372) said THAAD interceptor design and qualification issues are delaying the delivery of the first two batteries to the Army, and the conditional release of THAAD batteries to the Army is delayed six months.
Also, the GAO report said target issues continue to delay the test schedule, a finding also made by the FY 2010 annual report from the Director of Operational Test and Evaluation.
While making 10 recommendations, with which the Defense Department agreed with seven, GAO said that overall in 2010, “MDA made progress in delivering assets as well as increasing transparency and accountability. While many significant, positive steps were taken, GAO also found issues limiting the extent to which cost, schedule, and system performance can be tracked. Stabilizing the new acquisition approach, improving execution and increasing transparency are key steps for DoD.”
THAAD interceptors are produced at Lockheed Martin’s Pike County Facility in Troy, Ala. The launchers and fire control units are produced at the company’s Camden, Ark., facility.
In 2006, a contract for the delivery of the first two U.S. Army batteries was awarded to Lockheed Martin.
Since 2005, the THAAD development program has completed 11 flight tests, with seven intercepts in seven attempts. THAAD can intercept in both the endo- and exo-atmosphere, and is being developed as part of MDA’s Ballistic Missile Defense System to protect the United States and its allies from ballistic missiles.
The first THAAD Battery (A-4 ADA Battery) was activated at Ft. Bliss, Texas in May 2008. In October 2009, the Army activated the second THAAD Battery (A-2 ADA Battery). Unit training for this battery began earlier this year.