WASHINGTON (Reuters) - The U.S. Department of Defense has approved a $946 million payment to Lockheed Martin for work on Saudi Arabia's Terminal High Altitude Area Defense (THAAD) missile system, part of a broader $110 billion arms package finalized under the Trump administration in 2017.
A 2016 photo of Lockheed Martin's logo at Japan Aerospace 2016 highlights the timeline of the contract, which includes installing 44 THAAD launchers and related equipment for Saudi Arabia's missile defense infrastructure.
The payment, designated as an 'undefinitized contract action,' aims to prevent production delays for the system. Pentagon officials noted the contract also covers updating obsolete systems and funding materials, tooling, and engineering development.
The deal follows November 2017 agreements between U.S. and Saudi officials, occurring amid global scrutiny of Saudi Arabia's leadership after the 2018 killing of journalist Jamal Khashoggi.
