The Army on March 29 awarded Lockheed Martin [LMT] a $483.5 million follow-on production order for Joint-Air-to-Ground Missiles (JAGM) and Hellfire missiles, covering deliveries to the service, the Navy and the Czech Republic, France and Poland, according to a Pentagon contracts announcement.
Lockheed Martin noted the latest production is the third follow-on award placed under the potential $4.5 billion multiple year deal for JAGMs and Hellfires the Army awarded the company in March 2023.
“This follow-on contract signals the Army’s continued confidence in both the JAGM and Hellfire systems as premier defense capabilities when it comes to ensuring customer readiness worldwide,” Joey Drake, Lockheed Martin Missiles and Fire Control’s program management director for multi-domain missile systems, said in a statement. “We will be able to continue to provide procurement and production support for both systems, which is important because both are critical multi-domain combat solutions that protect and defend our armed forces and allies against ever-changing global threats.”
The multiple year JAGM and Hellfire contract awarded in late March 2023 included a first-year production option valued at $439 million and covering Foreign Military Sales cases with Australia, the Czech Republic, France, South Korea and Thailand (Defense Daily, April 3, 2023).
Since then, the Army awarded an initial $501.7 million follow-on option in late July 2023, which included JAGMs and Hellfires for Australia, France, India and the Netherlands and another $22.3 million second year option in last September, which also included FMS funds for cases with Australia, Czech Republic, France, India, South Korea and Spain.
“This contract provides maximum flexibility to facilitate the procurement of both systems to multiple domestic and international customers, especially as the JAGM program anticipates a significant increase in international demand for the weapon system in coming years,” Lockheed Martin said in a statement on Monday.