Lockheed Martin Corp said on Monday the U.S. Army has awarded a multi-year production contract for Joint-Air-to-Ground Missiles (JAGM) and HELLFIRE missiles, in a deal that could go up to $4.5 billion including follow-on awards.
The logo of Lockheed Martin is pictured at the Eurosatory international defence and security exhibition in Villepinte, near Paris, France June 13, 2022. REUTERS/Benoit Tessiersaid on Monday the U.S. Army has awarded a multi-year production contract for Joint-Air-to-Ground Missiles and HELLFIRE missiles, in a deal that could go up to $4.5 billion including follow-on awards.
The contract, which will have a total value of $439 million in its first year, is among the first multi-year awards for precision munitions, as the Pentagon looks to build stocks in the hopes of deterring China.and $44 billion for defense-related programs at the Federal Bureau of Investigation, Department of Energy and other agencies. The 2024 budget proposal is $28 billion more than last year's $858 billion.
Lockheed added the contract also offers three additional follow-on awards which will start in late 2023, allowing for a total contract value of up to $4.5 billion over the next four years. The JAGM program anticipates a "significant increase" in international demand for the weapon system, Lockheed said.
Reporting by Amna Karimi in Bengaluru, additional reporting by Mike Stone in Washington; Editing by Krishna Chandra Eluri
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