Lockheed, Boeing agree to new PAC-3 seeker contract

Lockheed Martin last week awarded Boeing a $1.1 billion contract to supply seekers for Patriot Advanced Capability-3 Missile Segment Enhancement interceptors.

The deal, definitized by the two companies late last week and announced today by Boeing, is part of a $6 billion firm-fixed priced contract the Army awarded Lockheed in April 2020 for incidental services, hardware, facilities, equipment and all technical, planning, management, manufacturing and testing efforts to produce PAC-3 MSE interceptors, associated ground support equipment and spares.

That contract included 954 PAC-3 MSE missiles to fulfill existing foreign military sales partner agreements and had option pricing to support 2021 to 2023 requirements and future foreign purchases, an official in the Lower Tier Project Office in the Army’s program executive office for missiles and space said in 2020.

Today, Boeing said under the contract it will produce approximately 1,500 additional seekers in Huntsville, AL, as a subcontractor to Lockheed Martin beginning in 2023. Boeing says it has produced more than 4,300 PAC-3 missile seekers since 2000 and recently completed a facilities expansion in Huntsville to accommodate future production growth.