Boeing has been awarded an undefinitized contract worth up to $14.7 billion to increase production of seekers for the PAC-3 Missile Segment Enhancement (MSE) interceptor, the company announced Oct. 5. The seven-year deal was issued by Lockheed Martin, which manufactures the PAC-3, and follows a framework agreement Boeing reached with the Pentagon in April to triple seeker production.
The PAC-3 MSE is a hit-to-kill interceptor launched by the Patriot air defense system to defeat threats such as missiles and aircraft, according to Breaking Defense. A seeker is mounted in a missile’s nose and helps guide it to its target.
“Early investment and a relentless focus on quality and execution have positioned us to now deliver seekers at unprecedented levels in the near-term, and we’re committed to building on that momentum,” Steve Parker, president and CEO of Boeing’s defense unit, said in a company release.
The award is an undefinitized contract action, or UCA, which allows work to begin while final dollar amounts and quantities are finalized. Breaking Defense reported that the UCA structure permits early work even when appropriations are stalled, noting that a fiscal 2027 budget has not yet been approved by lawmakers.
Boeing said it began ramping up production and surging hiring earlier this year at its facilities in Huntsville, Alabama, to support increased output. Historically, the missile’s seeker has reportedly been a choke point for PAC-3 production.
The seeker contract follows a nearly $59 billion contract vehicle for PAC-3 MSE production issued to Lockheed in July, which came after a framework agreement to raise the missile’s output to 2,000 units annually by 2030.
In August, Boeing revealed it is developing a low-cost alternative seeker called the Ultra Low-Cost Seeker amid military demand for cheaper interceptor options. Boeing said future flight tests are planned but has not disclosed when the new seeker could enter service.
Sources: USNI News · Defence Blog