Air Force Purchases $3.2B-Worth of Missiles From Lockheed Martin

The U.S. Air Force has awarded Lockheed Martin‘s (NYSE: LMT) missiles and fire control business a $3.23 billion sole-source contract for the production of joint air-to-surface standoff missiles and long-range anti-ship missiles.

The firm-fixed-price, undefinitized contract action covers JASSM Lot 22 and foreign military sales missile procurement and the contractors will supply the systems to the militaries of Japan, Finland, Poland and the Netherlands, the Department of Defense said Friday.

Lockheed has been producing JASSM since 2001 and is in the process of executing an accelerated acquisition contract for the LARSM for the Pentagon.

Work will be performed at the company’s facilities in Orlando, Florida, until July 31, 2032. The Air Force Life Cycle Management Center at Eglin Air Force Base serves as the contracting activity.

Lockheed is developing AGM-158 eXtreme Range cruise missile, which builds on the capabilities of the JASSM and LRASM. The new weapon system offers an increased standoff attack range. It is compatible with the same platforms that can deploy JASSM and LRASM, including the F-35 Lightning II stealth combat aircraft.

The defense contractor is also building the next-generation missile interceptor system for the Missile Defense Agency.