Lockheed Martin Revised THAAD System Contract Pushes Value to $449 Million

Lockheed Martin has received a $14 million modification to a previously awarded contract for the Terminal High Altitude Area Defense (THAAD) system, bumping up the contract value to $449 million, the US Department of Defense announced in a press release.

WASHINGTON (Sputnik) — The contract stipulates providing engineering, logistics, missile and software support for the THAAD system, according to a press release.

"Under this modification, the contractor will continue to conduct logistics performance requirements, forward stationing for theater support, logistics information capabilities, post deployment software support, product assurance, safety, missile support and security and engineering services," the release stated on Wednesday.

THAAD is a long-range, land-based theater ballistic missile defensive system intended to destroy incoming missiles at high altitudes within and outside the atmosphere.

On March 8, components for the THAAD system began to arrive in South Korea as the Seoul government has sought rapid deployment of the system in response to the threat from North Korea’s ballistic missile tests. The news of the deployment caused a fierce reaction from China.

Work on the contract will be performed in the US states of Alabama, California and Texas, and is expected to be completed by March 31, 2019, according to the release.