# Army Awards Lockheed Martin Interceptor OTA

On October 29, 2026, the U.S. Army awarded Lockheed Martin an Other Transaction Agreement (OTA) valued at approximately **$1.08 billion** for prototype development, testing, and evaluation of the Future Interceptor, using Lockheed Martin’s PAC-3 Edge design. The effort combines $660.4 million in government funding with a $423 million company cost-sharing commitment. Testing is planned to begin in 2027, with potential fielding in 2031; follow-on development and production are not guaranteed and will depend on prototype performance, Army requirements, available resources, and acquisition decisions.

- The award is a development-stage agreement, not an open solicitation or confirmed production award. Suppliers should distinguish the funded prototype phase from potential follow-on work.
- The signals identify possible integration needs involving IBCS, M903, and HIMARS Flex. Contractors with relevant integration or component capabilities can assess where they may fit as the prototype advances.
- Companies planning business development around the program can use the planned 2027 testing and potential 2031 fielding as program context, while recognizing that production decisions remain contingent on evaluation results.
- A separate Navy Terminal Stage Interceptor competition is planned, but no competition date is specified in the signals.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Contracting Vehicles
**Published:** October 30, 2026

### Government Entities
- U.S. Army (Army)
- U.S. Navy (Navy)

### Vendors
- Lockheed Martin (awardee)
- Anduril (unsuccessful bidder)
- Northrop Grumman (component supplier for the multi-pulse solid rocket motor and control system)

### Key Quotes
> Developing advanced interceptor capabilities is essential to maintaining our nation’s defensive advantage against increasingly sophisticated threats. The Future Interceptor program reflects the Army’s commitment to accelerating innovation, leveraging proven technologies and strengthening the layered defenses that protect our forces and national interests at home and abroad.
> — Lt. Gen. Frank Lozano, Portfolio Acquisition Executive for Fires

> In the endgame, what we would expect is you can imagine we have an entire family of systems, offensive and defensive, to be able to mix and match components, assemblies, front ends, back ends.
> — Tim Cahill, President of Lockheed Martin Missiles & Fire Control

### Sources
- [Army Picks Lockheed For Future Interceptor Development Effort Estimated At $1.08 Billion - Defense Daily](https://www.defensedaily.com/army-picks-lockheed-for-future-interceptor-development-effort-estimated-at-1-08-billion/army) - Defense Daily
- [Army Awards Lockheed Martin $1.08B Future Interceptor Deal – MeriTalk](https://www.meritalk.com/articles/army-awards-lockheed-martin-1-08b-future-interceptor-deal) - MeriTalk
- [Army selects Lockheed Martin for billion-dollar Future Interceptor program | DefenseScoop](https://defensescoop.com/2026/10/29/army-selects-lockheed-martin-future-interceptor-program) - DefenseScoop