Lockheed Martin has received a contract for $341 M from the US Army Aviation and Missile Command (AMCOM) for the production of the Patriot Advanced Capability (PAC-3) Missile. Under the contract, Lockheed Martin Missile and Fire Control will produce 88 PAC-3 missiles plus other associated hardware. Production of all equipment will take place at the company's manufacturing facilities in Dallas and Lufkin, TX, and the PAC-3 Missile All-round facility in Camden, AK. The first production PAC-3 missile were delivered to the Army in September 2001.

Lockheed Martin Missile and Fire Control is the prime contractor responsible for the PAC-3 missile segment upgrade, which consists of the PAC-3 missile, missile canisters, the Fire Solution Computer (FSC) and the Enhanced Launcher Electronics System (ELES). The PAC-3 missile is a high velocity, hit-to-kill missile and is the next generation Patriot missile being developed to provide increased capability against advanced theater ballistic missile, cruise missile and hostile aircraft. The PAC-3 missile kills incoming targets by direct, body-to-body impact. The PAC-3 missile, when deployed in a Patriot battery, will significantly increase the Patriot system's firepower, since 16 PAC-3 missile load-out on a Patriot launcher, compared with four Patriot PAC-2 missiles.

The performance of the PAC-3 missile during its testing phases over the past several years is unequaled by any other air defense missile. All PAC-3 missile testing to date has been deemed by the Army and DOT&E community as threat representative and operationally realistic. During the flight test program, the PAC-3 missile demonstrated hit-to-kill lethality against tactical ballistic missiles (TBMs) and advanced cruise missiles, as well as full-scale aircraft.