The Missile Defense Agency selected Lockheed Martin and partner Aerojet Rocketdyne to deliver the nation’s most advanced missile defense system, the Next Generation Interceptor.

The $3.7 billion contract for Next Generation Interceptor is the first step in the development and demonstration phase delivering on MDA’s requirements to modernize the current Ground-based Midcourse Defense system.

The contract will develop the booster and hit-to-kill payload and will launch from the GBI silo system in Fort Greely, Ark., and Vandenberg Air Force Base in California.

“We are excited and proud the MDA entrusted Lockheed Martin to lead the development of this game-changing system that will greatly improve our nation’s security for decades to come,” said Sarah Reeves, vice president of Next Generation Interceptor Program at Lockheed Martin. “We have been working toward supporting never-fail missions such as NGI for decades, and our team has the expertise and shared vision required to deliver on the MDA’s need to evolve GMD.”

NGI serves as a first line of a layered missile defense system and is a national priority for the MDA and U.S. Northern Command.