- The contract is a big win for Lockheed Martin and a big step forward for the US Army's plans to add more precision weapons to its stockpile.
- The company is in a good position to handle the expected rise in demand for the JAGM system.
Lockheed Martin Corp. said on Monday that the US Army had given the company a contract to make Joint-Air-to-Ground Missiles (JAGM) and HELLFIRE missiles over a number of years. The deal could be worth up to $4.5 billion if follow-on awards are added to it.
This is a one-of-a-kind contract because it is the first of its kind to be given for precision munitions over a long period of time. The goal is to build up stocks to scare China away.
In the first year, the contract will be worth a total of $439 million, which includes three follow-on awards that will start in late 2023.
The JAGM program is sure to make people around the world want to buy the weapon system. Lockheed’s move is meant to cause a “significant increase” in demand around the world.
In March, President Joe Biden asked for $842 billion for the Pentagon and $44 billion for defense-related programs at the FBI, the Department of Energy, and other agencies. This news comes from those requests.
Due to this, the proposed budget for 2024 is $28 billion more than the budget for last year, which was $858 billion.
The award is important for Lockheed Martin because it solidifies its position as one of the top companies that makes military weapons.
Since the 1980s, when the HELLFIRE weapon system was first introduced, the company has delivered tens of thousands of missiles to the US Army and its allies.
The JAGM from Lockheed Martin is a precision missile from the next generation that can be fired from a variety of platforms, such as helicopters, drones, and fixed-wing aircraft.
The missile is made to hit a wide range of targets, such as boats, bunkers, and armored vehicles.
The contract is a big win for Lockheed Martin and a big step forward for the US Army’s plans to add more precision weapons to its stockpile.
The company is in a good position to handle the expected rise in demand for the JAGM system.
This contract will probably be used as a basis for other deals.