The U.S. Department of Defense has awarded Lockheed Martin two major contracts exceeding a combined value of $2 billion, aiming to bolster the production and manufacturing capabilities of the Joint Air-to-Surface Standoff Missile (JASSM) and Long-Range Anti-Ship Missile (LRASM) systems.
The first contract, announced on March 13, is a firm-fixed-price modification worth up to $1.93 billion for the procurement of JASSM Production Lot 23 and LRASM Production Lot 9, along with economic order quantity funding for future lots. The deal increases the total contract value to $5.18 billion. Work will be conducted at Lockheed Martin’s Orlando, Florida facility, with completion expected by July 31, 2029. The U.S. Air Force and Navy have obligated more than $1.44 billion in fiscal year 2024 and 2025 funds to support the project.
A second contract modification, awarded on March 14, allocates $122.5 million to enhance production infrastructure. The funding will be used to procure tooling and test equipment necessary to increase output for both missile systems. The work, also based in Orlando, is scheduled for completion by July 14, 2028.
JASSM and LRASM are key components of U.S. military long-range strike capabilities. The stealthy JASSM-ER variant has been exported to several allied nations, including Australia, Finland, and Poland, under the Foreign Military Sales (FMS) program. The LRASM, designed to engage naval targets, has also seen increasing international demand.