Lockheed, Raytheon to share planned $1.4 billion missile sale to South Korea - Washington Business Journal

Nov 6, 2014, 12:33pm EST Updated: Nov 6, 2014, 1:45pm EST

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Lockheed Martin Corp.

Lockheed and Raytheon could share a planned $1.4 billion missile sale to South Korea.

A $1.4 billion deal with South Korea, now awaiting Congressional approval, would include 136 Patriot Advanced Capability (PAC-3) missiles manufactured by Bethesda-based Lockheed Martin, a well as as two flight test targets and various support systems and services. Raytheon will serve as the systems integrator for the PAC-3 missile.

According to the announcement from the Defense Security Cooperation Agency, which coordinates foreign military sales between the Pentagon and allies, the sale will provide South Korea with the capability to defeat lower-tier ballistic missile defense threats, and decrease its reliance on U.S. combat forces to maintain stability in the region. It also increases interoperability between South Korea's ground and sea-based ballistic missile defense forces and U.S. forces located in the region.

The U.S. is scheduled to hand over command of South Korea's wartime defenses in December 2015, so missile-defense capabilities are vital.

South Korea "is one of the major political and economic powers in East Asia and the Western Pacific and a key partner of the United States in ensuring peace and stability in that region," the Pentagon announcement noted. "It is vital to U.S. national interests to assist our Korean ally in developing and maintaining a strong and ready self-defense capability."

In June, Bloomberg reported the PAC-3 and Lockheed's longer-range Terminal High-Altitude Area Defense system, known as Thaad, were among the missile systems that South Korea's military was eyeing. At the time, the U.S. was performing analysis with Korean officials "to help them reach a decision about the capabilities they would have."

This deal comes only a month after Lockheed and Raytheon won a $1.75 billion deal to replenish Saudi Arabia's aging stockpile of PAC-3 missiles.

Jill R. Aitoro covers federal contracting.