Lockheed Martin Awarded $3B for Aegis Ballistic Missile Defense Continuation

Lockheed Martin has been awarded a $2.97 billion contract to continue as the Combat Systems Engineering Agent for the Aegis Ballistic Missile Defense (BMD) system.

The 10-year indefinite-delivery/indefinite-quantity agreement runs from July 2025 through June 2035 and was announced by the U.S. Missile Defense Agency.

Under this follow-on contract, Lockheed Martin will carry out system design, development, integration, sustainment, and software engineering for the Aegis BMD weapon system. The work supports U.S. Navy guided-missile destroyers and cruisers, the Aegis Ashore sites in Poland and Romania, the Aegis Guam system, and the hypersonic Glide Phase Interceptor program.

The contract also covers future studies, software development, and upgrades to improve system performance across all phases of missile defense, including detection, engagement, and threat assessment. Enhancements will be designed to counter advanced missile threats, integrate multi-tier defense weapons, and strengthen data link architectures.

Funding will be provided through research and development, procurement, and operations and maintenance sources. All contract work will be performed in Moorestown, New Jersey.

In addition to the new agreement, the U.S. government has awarded Lockheed Martin several related contract modifications. A $41.2 million increase was made to extend the existing Aegis BMD contract through June 2026, raising its total value to more than $1.46 billion. A separate $92.2 million modification was issued for in-service sustainment and integration work to be completed by December 2025. Lockheed Martin Missiles and Fire Control in Grand Prairie, Texas, also received a $42 million contract extension for logistics support, with completion expected by May 2026.

The Aegis combat system, which provides sea-based ballistic missile defense capabilities, has been under Lockheed Martin’s stewardship since 1995. The company retained its lead role following a 2013 competition with Raytheon and Boeing for continued system upgrades.