Lockheed Martin gets first payment for Saudi missile $110bn deal

US defence company Lockheed Martin was paid $946m as an initial payment for the kingdom's purchase of 44 THAAD launchers, missiles and other required equipment
Lockheed Martin gets first payment for Saudi missile $110bn deal
In November, American and Saudi officials formally signed letters of offer and acceptance for the kingdom’s purchase of 44 THAAD launchers, missiles and other required equipment.
By Bernd Debusmann Jr
Tue 05 Mar 2019 09:46 AM

US defence company Lockheed Martin will receive the first payment for the installation of a sophisticated Terminal High Altitude Area Defence (THAAD) system in Saudi Arabia, the Pentagon announced on Monday.

The system forms part of a larger $110 billion arms package agreed between the Trump administration and Saudi Arabia in 2017.

According to a statement on the website of the US Department of Defence, Lockheed has been awarded a nearly a $946 million payment for the contract.

In November, American and Saudi officials formally signed letters of offer and acceptance for the kingdom’s purchase of 44 THAAD launchers, missiles and other required equipment.

According to the Pentagon state, the “undefinitized contract action” is a partial payment that will see Lockheed Martin also provide tooling and test equipment, key personnel, line requalification activities, initial training development and maintenance.

The performance period for the contract is from February 28, 2019 to October 31, 2026.

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