Lockheed Martin has awarded Boeing an undefinitised contract action valued at about $14.7bn to increase production and supply seekers for PAC-3 Missile Segment Enhancement (MSE) interceptors.
The award allows Boeing to triple seeker output under a previously announced seven-year framework agreement with the US Department of War (DoW).
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The arrangement is intended to accelerate delivery of air-defence capabilities under the department’s Acquisition Transformation Strategy, according to Boeing.
PAC-3 MSE is a hit-to-kill interceptor used by the Patriot air-defence system against ballistic and cruise missiles, as well as aircraft.
Boeing supplies the Ka-band millimetre-wave seeker, which is designed to identify, track and engage threats including hypersonic missiles.
Boeing Defence, Space & Security president and CEO Steve Parker said: “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.
“Our Boeing teammates could not be prouder of the role they play in protecting US and allied service members, civilians and critical infrastructure worldwide.”
Boeing said it had already begun hiring and increasing production activity earlier this year after the framework agreement was announced.
The company expects the contract to create hundreds of direct and indirect jobs around Huntsville, Alabama.
The production rise follows investment in Boeing’s PAC-3 seeker factory, alongside efforts to reinforce its supplier base, update facilities and alter production processes and controls, the company said.
The programme has been in service for a decade. PAC-3 MSE reached initial operational capability in August 2016, entered full-rate production in 2018, and has become part of a wider effort to expand interceptor output.
In July, Lockheed Martin said it planned to triple its PAC-3 MSE interceptor production capacity by 2030 after securing a seven-year US government contract modification valued at up to $53.86bn.
