Huntsville, Ala. – October 05, 2026 -- Boeing has been awarded an undefinitized contract action worth approximately $14.7 billion by Lockheed Martin to scale production and deliver PAC-3 Missile Segment Enhancement (MSE) seekers.
Contract triples seeker output under seven-year framework
The award formalizes a seven-year framework agreement with the U.S. Department of War, enabling Boeing to triple its production of PAC-3 MSE seekers. The seekers power the most advanced Patriot interceptors, allowing them to identify, track and engage threats ranging from hostile aircraft to hypersonic, ballistic and cruise missiles.
Production surge aligns with Pentagon's Acquisition Transformation Strategy
The increased output is designed to support the Department of War's Acquisition Transformation Strategy and bolster the U.S. Arsenal of Freedom initiative, which aims to accelerate delivery of critical defense capabilities to service members.
Huntsville facility expansion to create hundreds of jobs
Boeing has already made capital investments to expand its PAC-3 seeker factory, strengthen supplier relationships, modernize facilities, and improve first-time quality controls. Production ramp-up and associated hiring began earlier this year following the initial framework agreement, with hundreds of direct and indirect jobs expected in the Huntsville, Alabama, area as a result of this contract.
"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 Defense, Space & Security.