The US Department of War (DoW) has established a seven-year framework agreement with Boeing to increase production of seekers for Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) by threefold.
According to Boeing, the agreement aims to meet worldwide requirements for air and missile defence in order to protect military personnel, civilians, and vital infrastructure.
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Boeing-built seekers are intended to help PAC-3 interceptors identify and counter a range of advanced threats, including hostile aircraft, hypersonics, ballistic, and cruise missiles.
Boeing Defense, Space & Security president and CEO Steve Parker said: “With this framework, we’ll be able to produce and deliver more advanced seekers and enhance our military’s advantage.”
This move follows the DoW’s recent accord with Lockheed Martin, the prime contractor for the PAC-3 Missile Segment Enhancement (MSE), aimed at more than tripling the output of the PAC-3 MSE all-up round.
The agreement, which extends over seven years, is expected to increase annual output from nearly 600 to 2,000 units.
Boeing, Lockheed Martin, and the DoW are now set to ramp up production immediately and will work towards a multi-year contract award later in the year.
The agreement aligns with the DoW’s Acquisition Transformation Strategy, which focuses on direct engagement with suppliers across the defence industrial base.
Under Secretary of War for Acquisition and Sustainment Michael Duffey said: “This agreement with Boeing is a direct reflection that speed, volume, and a resilient supply chain are paramount.
“We are moving beyond the old model and forging direct partnerships with critical suppliers to ensure the entire defence industrial base is postured to expand production and deliver the decisive capabilities our warfighters need at speed and scale.”
Since 2024, Boeing has invested over $200m into expanding its production capacity in Huntsville, Alabama, which includes a new 35,000ft2 facility.
The framework allows Boeing to expand its skilled workforce and supports collaboration with local community partners. It also provides for further cash-neutral investments by Boeing across the production process.
Recently, the DoW entered into a framework agreement with BAE Systems and Lockheed Martin to quadruple manufacturing of seekers for the Terminal High Altitude Area Defense (THAAD) interceptor.
