# Department of War Awards $35B THAAD Contract

The Department of War (DOW) has awarded Lockheed Martin a potential **$35 billion** undefinitized multiyear contract in June 2026 to significantly increase production of Terminal High Altitude Area Defense (THAAD) interceptors. This contract aims to scale annual interceptor output from 96 to approximately 400 units over seven years, supporting the DOW's Acquisition Transformation Strategy to accelerate munitions production and strengthen the defense industrial base through long-term commitments and expanded manufacturing capabilities.

- The contract represents a major procurement opportunity for defense contractors specializing in missile systems and related manufacturing.
- Lockheed Martin, as the prime contractor, will likely expand operations at key production facilities including the Munitions Production Center in Troy, Alabama, with potential supply chain impacts in Courtland, Alabama, and Camden, Arkansas.
- Procurement professionals should note the strategic emphasis on scaling production capacity and long-term industrial base resilience, which may influence future contract structures and vendor engagement.
- Companies providing components, subsystems, or manufacturing services related to THAAD interceptors may find increased demand and should evaluate partnership or subcontracting opportunities.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Contracting Vehicles
**Published:** June 25, 2026

### Government Entities
- Department of War (DOW)

### Vendors
- Lockheed Martin (prime contractor)
- BAE Systems ()
- Honeywell ()

### Sources
- [Lockheed Martin Lands $35B DOW THAAD Interceptor Contract](https://www.govconwire.com/articles/lockheed-martin-dow-thaad-interceptors) - GovCon Wire