Pentagon’s No.1 weapons supplier Lockheed Martin Corp was awarded an $830 million modification to an existing contract for Terminal High Altitude Area Defense (THAAD) element development and support services.

The modification, announced Thursday by the Department of Defense, it brings the total maximum ceiling value of THAAD weapon system contract from $1,5 billion to $2,3 billion.

This modification provides for the exercise of an option for additional incremental development, support to flight and ground test programs, and responsive support to Warfighter requirements to sustain the Ballistic Missile Defense System throughout the acquisition life cycle.

The THAAD element provides a globally-transportable, rapidly-deployable capability to intercept ballistic missiles inside or outside the atmosphere during their final, or terminal, phase of flight. THAAD is strictly a defensive weapon system. The system uses hit-to-kill technology where kinetic energy destroys the incoming target.

Each THAAD system is comprised of five major components: interceptors, launchers, a radar, a fire control unit, and support equipment. THAAD is managed by the Missile Defense Agency; Lockheed Martin serves as the prime contractor and systems integrator; and the THAAD system is operated by the U.S. Army.

Lockheed Martin’s work will be performed at Sunnyvale, California; and Huntsville, Alabama. No funding is being obligated at the time of award. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity