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 contract was issued by Lockheed Martin, which manufactures the PAC-3, and is intended to accelerate seeker output.
The PAC-3 MSE is a hit-to-kill interceptor launched by the Patriot air defense system to counter missiles and aircraft. The seeker, mounted in the missile’s nose, guides it to its target. The award comes as the U.S. rushes to replenish interceptor stockpiles depleted by conflicts in Ukraine and the Middle East.
“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,” said Steve Parker, president and CEO of Boeing’s defense unit.
The contract follows a seven-year framework agreement Boeing reached with the Pentagon in April to triple seeker production, though specific quantities were not disclosed. The new award essentially underwrites that framework.
In July, Lockheed received a nearly $59 billion contract vehicle for PAC-3 MSE production, following a framework agreement to raise missile output to 2,000 units annually by 2030. Like the Lockheed award, the Boeing contract is an undefinitized contract action (UCA), which allows work to begin before final dollar amounts and quantities are settled and permits early work even if appropriations are delayed—notable since a fiscal 2027 budget has not yet been approved by lawmakers.
Boeing said it began ramping up production and hiring earlier this year at its Huntsville, Ala., facilities to support increased output. The seeker has historically been a reported choke point for PAC-3 production.
In August, Boeing revealed it is developing a low-cost alternative seeker called the Ultra Low-Cost Seeker, with future flight tests planned but no disclosed service entry date.
Sources: Breaking Defense · DVIDS News