The U.S. Air Force recently awarded Lockheed Martin a sole-source $3.2 billion firm-fixed-price, undefinitized contract for procurement of AGM-158B Joint Air-to-Surface Standoff (JASSM) missiles and AGM-158C Long-Range Anti-Ship Missiles (LRASM). The contract covers procurement of JASSM Lot 22 and Foreign Military Sales orders for Japan, the Netherlands, Finland, and Poland.
Fiscal 2024 (Air Force) missile procurement funds in the amount of $1.5 billion; fiscal 2024 (Navy) weapon procurement funds in the amount of $176.3 million; fiscal 2024 (Air Force) operations and maintenance funds in the amount of $2.1 million; and FMS funds in the amount of $751.7 million, are being obligated at time of award. Work under this contract will be completed by July 31, 2032.
The Air Force has increased its JASSM inventory objective multiple times, reflecting a desire to invest in weapons that would be vital in a near-peer conflict. The procurement target initially increased from 4,900 to 7,200 missiles. The goal was then increased to 10,250 in 2022 and again to 10,960 in 2023.
The FY23 defense policy bill authorized multiyear procurement of 3,100 JASSMs, subject to the availability of appropriations in future budgets. The Air Force subsequently launched a multiyear procurement strategy for JASSM procurement in FY24. Annual procurement rates were increased in the FY24 budget request, growing to approximately 550 missiles per year from around 500 per year under the previous plan. The Air Force requested 550 missiles in FY25 as planned.
The Air Force and Navy are both in the process of procuring LRASMs. FY25 budget documents show total procurement of 900 missiles for the Navy and 689 missiles for the Air Force. The service requested 90 missiles in FY25, which is 18 more than planned. The FY25 procurement plan comprises 30 C-1 variants and 60 C-3 variants. The Air Force sought 115 LRASMs in its FY25 request, and a total of 549 are funded through FY29.
Lockheed Martin also received a $130 million contract in August to help increase JASSM and LRASM production capacity.
As editor of International Military Markets, North America, Shaun has cultivated a deep understanding of the vast defense markets in the United States and Canada. Shaun's perspective on defense procurement and budget issues has been cited in a variety of defense periodicals, including Defense News and National Defense Magazine. Further, Shaun played an integral role in the development of Forecast International's U.S. Defense Budget Forecast product, which offers an unprecedented level of insight into the Pentagon's acquisition budget. In addition to providing original analytical content for the U.S. Defense Budget Forecast, Shaun oversees an internal defense budget forecasting process involving Forecast International's team of skilled systems analysts following release of the DoD's annual budget request. Shaun is also in charge of managing Forecast International's Weapons Inventory database.
