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State Dept OKs $1.42B in PAC-3 MSE Missile, Repair, Sustainment Requests From Kuwait

The State Department has cleared Kuwait’s request to buy Patriot Advanced Capability-3 Missile Segment Enhancements, program sustainment support and repair services under three foreign military sales agreements worth $1.42B combined.

Kuwait requested to purchase PAC-3 MSEs with canisters, test missiles, missile launchers, missile round trainer, empty round trainer, PAC-3 telemetry kits, training devices, spares, test equipment, personnel training, technical and logistics services under a potential $800M FMS deal, the Defense Security Cooperation Agency said Thursday.

Lockheed Martin (NYSE: LMT) will serve as the principle contractor in this transaction that seeks to help the Middle Eastern country bolster its homeland air defense and provide improved security for its oil and natural gas infrastructure.

The department also approved a potential $425M deal that would allow Kuwait to continue to procure sustainment and technical support for the Patriot program, including PAC-3 Field Surveillance Program services, surveillance firing, storage, stockpile reliability, technical support for the country’s missile assembly/disassembly facility, transportation, tools and test equipment and maintenance services.

Lockheed, Raytheon Technologies (NYSE: RTX), Leidos (NYSE: LDOS) and KBR (NYSE: KBR) will serve as principal contractors in this deal, which also covers U.S. government and contractor engineering, spare and repair parts and organizational equipment and requires the deployment of 27 contractor personnel and five government representatives to Kuwait for up to two years.

Kuwait also asked the U.S. government to buy repair services for Patriot GEM-T missile and missile components, transportation support, organizational equipment, repair parts, personnel training and training equipment, technical data and publications and maintenance services through a potential $200M FMS transaction in support of the Patriot Missile Repair and Return program. Raytheon Technologies, Lockheed, KBR and Leidos will also serve as primary contractors.

DSCA said it notified Congress of the deals Thursday.

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