US Army awards Lockheed up to $4.5 bln missiles contract
Key Excerpts from Article on Website of Reuters
Posted: April 10th, 2023
Lockheed Martin Corp (LMT.N) 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 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. In March, President Joe Biden requested $842 billion for the Pentagon 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.
Note: Many benefit financially from warfare when it comes to provoking proxy wars and furthering U.S. agendas of full-spectrum dominance, as thoroughly explored in the book War is a Racket by the highly decorated general Smedley D. Butler. According to a revealing report, at least 47 members of Congress and their spouses hold between $2 million and $6.7 million worth of stock in Lockheed Martin and other companies that are among the top 100 defense contractors.