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Boeing Lands $14.7B Lockheed Martin Contract to Boost PAC-3 MSE Seeker Production

Boeing Lands $14.7B Lockheed Martin Contract to Boost PAC-3 MSE Seeker Production
Logo: Boeing
  • The undefinitized contract action spans seven years and is valued approximately $14.7 billion
  • The seekers built by Boeing will guide Patriot interceptors against aircraft and ballistic, cruise and hypersonic missiles
  • Boeing expects the award to generate several hundred direct and indirect positions around Huntsville, Alabama

Boeing has secured an undefinitized contract action valued at about $14.7 billion from Lockheed Martin to ramp up production of seekers for the PAC-3 Missile Segment Enhancement, or MSE, interceptor. Boeing said Monday the award allows it to triple seeker output under its previous seven-year framework agreement with the Department of War.

What Role Do Boeing Seekers Play in the PAC-3 MSE?

The seeker lets Patriot system interceptors detect, track and engage threats ranging from enemy aircraft to ballistic, cruise and hypersonic missiles.

The DOW signed the seven-year agreement with Boeing in April. That agreement supports a concurrent deal with Lockheed to more than triple production of complete PAC-3 MSE rounds. In July, Lockheed secured a seven-year UCA modification worth up to $53.86 billion, which increased the multiyear contract’s total value to $58.62 billion. L3Harris followed in September with a $4.7 billion Lockheed contract to produce PAC-3 MSE propulsion systems.

How Is Boeing Preparing to Scale Seeker Production?

Boeing said it has invested capital to expand its PAC-3 seeker factory and deepened ties with suppliers to build a more resilient and affordable supply chain. It also upgraded its facilities with new technology and tightened processes and controls to improve first-time quality.

The company began ramping up production and hiring after the framework agreement was announced earlier in 2026.

How Does the Contract Align With DOW Priorities?

According to Boeing, the expanded output advances the department’s Arsenal of Freedom initiative and its Acquisition Transformation Strategy, which seeks to speed the fielding of critical capabilities to service members.

Steve Parker, president and CEO of Boeing Defense, Space & Security, credited early investment and a sustained emphasis on quality and execution for the company’s position.

“Our Boeing teammates could not be prouder of the role they play in protecting U.S. and allied service members, civilians and critical infrastructure worldwide,” Parker said.

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Written by Arthur McMiler

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