Pentagon finalizes USD 4 billion missile defense contract with Lockheed Martin
Pentagon announced that it had finalized a deal with weapons contractor Lockheed Martin to provide more missile defense equipment to the US and the UAE. The deal, worth close to USD 4 billion, was for Lockheed's Terminal High Altitude Area Defense (THAAD) missile defense system. THAAD can cut off ballistic missiles even in midair.
According to Lockheed Vice President and THAAD Program Manager Mat Joyce, the agreement was the culmination of seven years of negotiations. Since orders of the US and the UAE were combined, the US was able to save 10% of the cost, Joyce added.
The terms of the agreement include 192 interceptors for the UAE and a maximum of 110 interceptors for the US Army. It also included a USD 352 million option for 2014 which the Pentagon must exercise before December 31. Joyce said the option would be advantageous for the US as it would enable them to get the weapons at a lower price.