Lockheed Martin Space Systems Co., Sunnyvale, Calif., is being awarded a sole-source letter contract at a total not-to-exceed price of $1,960,000,000 to supply two Terminal High Altitude Area Defense Weapon Systems and provide support services under a Foreign Military Sale to the United Arab Emirates. Work will be managed in Sunnyvale, Calif., with final assembly performed in Troy, Ala. Performance extends from Dec. 30, 2011 through June 30, 2016. The Missile Defense Agency, Huntsville, Ala., is the contracting activity. Lockheed Martin received an undefinitized contract totaling $1.96 billion to produce the Terminal High Altitude Area Defense (THAAD) Weapon System for the Missile Defense Agency and the United Arab Emirates. The contract is the first Foreign Military Sale (FMS) of the THAAD Weapon System and includes the production of two THAAD Weapon Systems and additional maintenance and support equipment. "Lockheed Martin is pleased the U.S. Government and the United Arab Emirates have reached an agreement on a path forward for the first Foreign Military Sale of the THAAD Weapon System," said Tom McGrath , vice president and program manager for THAAD at Lockheed Martin. "We look forward to working with our customers to deliver this important capability." THAAD interceptors are produced at Lockheed Martin's Pike County Facility in Troy, Ala. The launchers and fire control units are produced at the company's Camden, Ark. , facility. Lockheed Martin is currently under contract for four THAAD batteries for the U.S. Army. A contract for the delivery of the first two U.S. Army batteries was awarded to Lockheed Martin in late 2006. Contracts for batteries three and four were awarded in 2010 and early 2011 respectively.