Ground components for a key element of U.S. Ballistic Missile Defense System are to be manufactured and delivered by Lockheed Martin.

The U.S. Missile Defense Agency contract for Terminal High Altitude Defense system equipment covers interceptor launchers, support equipment, fire control and communication spares, and launcher spares.

The contract value is $124.6 million.

"THAAD provides the warfighter with the requisite deployability, combat power and lethality to counter current and emerging ballistic missile threats around the globe," said Richard McDaniel, Lockheed Martin vice president for THAAD. "The Lockheed Martin team is totally committed to meeting the growing demand for THAAD's unique strategic capabilities."

THAAD is a missile system for shooting down short, medium, and intermediate ballistic missiles in their terminal phase. The interceptor missile carries no warhead. It directly strikes the incoming enemy missile to destroy it. It is currently deployed on the U.S. island of Guam.

Lockheed notes the THAAD interceptor system has performed 11 successful missile intercepts in 13 flight tests since 2005.

Work on the contract will begin in 2016 and be completed the following year. Lockheed Martin facilities in Texas, Alabama, Florida, California and Arkansas will be involved in the project.