Lockheed gets $3B deal for Aegis missile defense

The U.S. Missile Defense Agency has awarded Lockheed Martin Rotary and Mission Systems (LM RMS) a 10-year contract worth up to $2.97 billion to continue work on the Aegis Ballistic Missile Defense (BMD) Combat Systems Engineering Agent program.

According to the Department of Defense, the contract ensures long-term support for the development, integration, and sustainment of Aegis BMD systems.

The indefinite-delivery/indefinite-quantity agreement, which runs through June 2035, covers Aegis cruisers, guided-missile destroyers, Aegis Ashore systems, and the Aegis Guam System. It also includes work on Glide Phase Intercept capabilities, part of the U.S. effort to counter evolving missile threats.

Lockheed Martin will support all phases of the fire control loop — including planning, detection, control, engagement, and assessment — by advancing software integration through the Common Source Library and other platforms. According to the Missile Defense Agency, the goal is to enhance threat discrimination, expand engagement ranges, and improve multi-tier weapon system performance. The contract also allows for rapid implementation of Tactical Data Link upgrades.

Work will be conducted in Moorestown, New Jersey, using funds from fiscal years 2025 through 2035 allocated for research, development, procurement, and operations.

In addition to the 10-year award, the Missile Defense Agency also issued a contract modification to Lockheed Martin under the current Aegis BMD Weapon Systems agreement. The modification, valued at $41.2 million, extends engineering and software support through June 2026. The total value of this separate contract now stands at $1.46 billion.

The Aegis BMD system, developed jointly by the Missile Defense Agency and the U.S. Navy, is a sea-based missile defense platform designed to detect and destroy short- and medium-range ballistic missiles. Aegis-equipped ships use hit-to-kill interceptors to engage threats in the midcourse and terminal phases of flight. These warships also contribute to Long Range Surveillance and Tracking (LRS&T) for intercontinental ballistic missile defense.

The Missile Defense Agency said Lockheed Martin remains the sole design authority and software source for the Aegis BMD Weapon System. Continued investment in the Aegis program is expected to address current gaps in missile defense and enhance the system’s ability to defeat next-generation threats.