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Saudi Arabia THAAD

The US State Department made a determination approving a possible Foreign Military Sale to the Government of Saudi Arabia for Terminal High Altitude Area Defense (THAAD) and related support, equipment and services for an estimated cost of $15 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale Oct 6, 2017.

The Government of Saudi Arabia requested a possible sale of forty-four (44) Terminal High Altitude Area Defense (THAAD) launchers, three hundred sixty (360) THAAD Interceptor Missiles, sixteen (16) THAAD Fire Control and Communications Mobile Tactical Station Group, seven (7) AN/TPY-2 THAAD radars. Also included are THAAD Battery maintenance equipment, forty-three (43) prime movers (trucks), generators, electrical power units, trailers, communications equipment, tools, test and maintenance equipment, repair and return, system integration and checkout, spare/repair parts, publications and technical documentation, personnel training and training equipment, U.S. Government and contractor technical and logistics personnel support services, facilities construction, studies, and other related elements of logistics and program support.

This proposed sale will support the foreign policy and national security objectives of the United States by improving the security of a friendly country. This sale furthers U.S. national security and foreign policy interests, and supports the long-term security of Saudi Arabia and the Gulf region in the face of Iranian and other regional threats. This potential sale will substantially increase Saudi Arabia’s capability to defend itself against the growing ballistic missile threat in the region. THAAD’s exo-atmospheric, hit-to-kill capability will add an upper-tier to Saudi Arabia’s layered missile defense architecture and will support modernization of the Royal Saudi Air Defense Force (RSADF). Saudi Arabia will have no difficulty absorbing this equipment into its armed forces.

The proposed sale of this equipment and support will not alter the basic military balance in the region. The principal contractors for the THAAD system are Lockheed Martin Space Systems Corporation, Dallas, TX, Camden, AR, Troy, AL and Huntsville, AL; and Raytheon Corporation, Andover, MA. There are no known offset agreements proposed in connection with this potential sale. Implementation of this proposed sale will require one hundred eleven (111) contractor representatives and eighteen (18) U.S. Government personnel in country for an extended period of time.

On March 4, 2019 Lockheed Martin Corporation Missiles and Fire Control, Dallas, Texas, was awarded a non-competitive hybrid contract line item numbers type (cost-plus-incentive-fee, firm-fixed-price and cost reimbursement) contract under Foreign Military Sale (FMS) cases to the Kingdom of Saudi Arabia (KSA). The total estimated value of this contract is $945,900,000. Under this undefinitized contract action, the contractor will provide Terminal High Altitude Area Defense (THAAD) FMS KSA Phase I long lead items, obsolescence, tooling and test equipment, key personnel, line requalification activities, initial training development, System Integration Lab and testbeds, three-level maintenance concept, exportability, and early engineering development. The work will be performed in: Dallas, Texas; Lufkin, Texas; Huntsville, Alabama; Anniston, Alabama; Camden, Arkansas; Troy, Alabama; and Sunnyvale, California. The performance period is from Feb. 28, 2019, through Oct. 31, 2026. KSA FMS funds in the amount of $945,900,000 will be used to fund this effort. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity (HQ0147-19-C-0007).