THAAD interceptor Lot 9 (23 units): ~$9.10B — 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 $9.10 billion ($9,095,274,178). 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$9,095,170,080 (≈$9.1B)
- 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
The amount cited in the write-up ($9,095,274,178) is the figure at the time of writing. After later modifications the record now shows $9,095,170,080 (the details above are current).
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 ~$9.10B ($9,095,274,178).
- 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.
- ~$9.10B for 23 interceptors — the cost and strategic weight of upper-tier interceptors.
- An undefinitized contract action authorises work before terms including price are settled, used where schedule presses.
1THAAD and terminal high-altitude defense
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.
2From an undefinitized contract action
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.
3The layers seen alongside PAC-3
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 ~$9.10B for 23 rounds speaks to how expensive and strategic these upper-tier interceptors are.
4Starting work before the terms are settled
What stands out in this contract's history is that it began as an undefinitized contract action. Where an ordinary contract starts once terms including price are settled, a UCA authorises work first and definitizes later.
It is used in procurements pressed for schedule, a practical example of balancing the need to stand up production quickly against the caution due for a contract of this size. What the contract covers is Lot 9 of the interceptor, the ninth production lot, with the description explicitly stating a quantity of 23.
Why it matters
High-altitude interceptors are strategic weapons forming the upper layer of ballistic-missile defense, and ~$9.10B 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