Lockheed Martin awarded Boeing an undefinitized contract action valued at approximately $14.7 billion on October 5, 2026. The award allows the aerospace manufacturer to scale manufacturing of PAC-3 Missile Segment Enhancement (MSE) seekers under a seven-year framework agreement with the U.S. Department of War. Production output for these critical components is set to triple compared to previous levels.
What it means
The contract supports the Department of War’s Acquisition Transformation Strategy by increasing the supply of seekers that enable Patriot interceptors to identify, track, and engage hostile aircraft, hypersonic missiles, ballistic missiles, and cruise missiles. Boeing stated that recent capital investments have expanded its PAC-3 seeker factory in Huntsville, Alabama, while modernized facilities and improved processes aim to increase first-time quality.
The company has also strengthened supplier relationships to create a more agile and resilient supply chain. Production ramp-up and hiring began earlier this year following the initial framework announcement. Hundreds of direct and indirect jobs are expected to be created in the Huntsville area as a result of the expansion. Steve Parker, president and CEO of Boeing Defense, Space & Security, said the company is “committed to building on that momentum” after positioning itself to deliver seekers at unprecedented levels.
Key facts
- $14.7 billion: value of the undefinitized contract action awarded by Lockheed Martin.
- Seven-year: duration of the framework agreement with the U.S. Department of War.
- Triple: factor by which PAC-3 MSE seeker production will increase.
- Huntsville, Alabama: location of the expanded seeker factory and expected job growth.
- Hundreds: number of direct and indirect jobs expected to be created locally.
- PAC-3 MSE seekers: components enabling Patriot interceptors to engage hypersonic, ballistic, and cruise missiles.
Source: Boeing news release