Lockheed wins Future Interceptor development award with $660 million government funding

The U.S. Army awarded Lockheed Martin ($LMT) an agreement to develop its Future Interceptor, a capability intended to counter more advanced air and missile threats. The estimated project value is approximately $1.08 billion, comprising $660.4 million of government funding and a $423 million cost-sharing commitment from Lockheed. The full project value therefore should not be treated as government revenue payable to the company.

Work will cover prototype development, testing and evaluation, with the aim of improving interception range, altitude, speed and maneuverability. The award gives Lockheed a funded role in the Army’s future layered-defense architecture, alongside existing systems. Later development and production decisions will depend on prototype performance, operational requirements, available resources and acquisition procedures. This is a development agreement, rather than a guaranteed order for full-scale missile production.

Sources:

• U.S. Army
• news.bgov.com