Army awards Lockheed Martin $358M ATACMS upgrade contract

Lockheed Martin has received a $358 million contract that includes the modernization of 290 long-range, surface-to-surface missiles for the Army, the company announced today.

This is the second award for the Army's service life extension program to dismantle and replace Army Tactical Missile System, or ATACMS, Block 1 and 1A warheads, which have a 10-year shelf life. Lockheed is still completing the first order of 150 upgraded missiles through a $161 million contract awarded in August 2017.

The Army will receive 290 more upgraded missiles through the second award, scheduled for delivery by January 2021. Lockheed will also deliver 30 new missiles to Romania under the contract. The company has a total surge capability of 400 missiles for the contract and is seeking options to produce about 500 per year, a spokeswoman said today.

The Army at the time of the award obligated $145.9 million in fiscal year 2017 and FY-18 research, development, test and evaluation; foreign military sales; Overseas Contingency Operations and aircraft procurement funds, according to the Defense Department.