THAAD interceptor Lot 9 (23 units): ~$9.08B — the Missile Defense Agency's award to Lockheed Martin (USAspending)
Per USAspending, the U.S. Missile Defense Agency (MDA) awarded production of Lot 9 (23 units) of the high-altitude THAAD missile-defense interceptor to Lockheed Martin. The value is about $9.08 billion ($9,080,516,983). THAAD destroys ballistic missiles by direct impact at high altitude spanning inside and outside the atmosphere, forming the layer above PAC-3.
Contract key facts
- RecipientLockheed Martin
- Contract value$9,085,281,983 (≈$9.09B)
- BranchDefense-wide
- Awarding agencyDepartment of Defense
- Awarding sub-agencyMissile Defense Agency
- Award typeDEFINITIVE CONTRACT
- Period of performance2017-03-27 〜 2028-11-30
- Contract ID (PIID)HQ014717C0032
Contract scope (original)
HQ0147-17-C-0032 UNDEFINITIZED CONTRACT ACTION (UCA) FOR THAAD INTERCEPTOR LOT 9 PRODUCTION - QTY OF 23
Key points
- MDA awarded production of THAAD interceptor Lot 9 (quantity 23) to Lockheed Martin. Cumulative ~$9.08B ($9,080,516,983).
- Began as an undefinitized contract action (UCA) — work authorized before terms are settled. Definitive contract, March 2017 – November 2028.
- THAAD destroys ballistic missiles by direct impact at high altitude spanning inside/outside the atmosphere (terminal, upper layer).
- Combined with PAC-3 (lower layer), it forms "layered missile defense" splitting roles by altitude.
- ~$9.08B for 23 interceptors — the cost and strategic weight of upper-tier interceptors.
THAAD (Terminal High Altitude Area Defense) intercepts threats within the terminal phase — when a ballistic missile finally descends — but at a higher altitude, a region spanning the inside and outside of the atmosphere. Its interceptor destroys the target by direct impact (hit-to-kill) rather than an explosive charge.
This contract covers "Lot 9" of that interceptor — the ninth production lot — and the description explicitly states a quantity of 23.
A notable point in the contract's history is that it began as an "undefinitized contract action (UCA)." A UCA authorizes work to start before terms such as price are fully settled, to be definitized later; it is used in procurements pressed for schedule. It is a practical example of balancing the need to stand up production quickly against the caution due for a contract handling vast sums.
Viewing THAAD alongside PAC-3 reveals the "layers" of U.S. missile defense. THAAD handles the upper side, intercepting ballistic missiles at higher altitude, while PAC-3 covers below it, the terminal lower layer — the concept of "layered defense" that stacks multiple tiers by altitude. The redundancy of catching at the next layer what one tier misses is central to ballistic-missile defense.
A cumulative ~$9.08B for 23 rounds speaks to how expensive and strategic these upper-tier interceptors are.
Why it matters
High-altitude interceptors are strategic weapons forming the upper layer of ballistic-missile defense, and ~$9.08B for 23 rounds shows their cost and importance. Starting as a UCA reflects the practical balance between schedule-pressed procurement and the caution due for vast contracts. As material for grasping the full picture of layered defense together with PAC-3, it is useful to readers tracking security and the defense industry.
FAQ
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Sources (primary)
This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.
- USAspending (award details)
- Contract ID (PIID)：HQ014717C0032