Boeing receives Lockheed PAC-3 MSE contract worth up to $14.7 billion
BA•Boeing said it was awarded a seven-year contract worth about $14.7 billion by Lockheed Martin to scale production and deliver PAC-3 MSE seekers.
1. Contract and production
Boeing said the seven-year contract will enable it to triple production of PAC-3 MSE seekers, the missile’s guidance component. The PAC-3 MSE interceptor is used in the Patriot air defense system to counter ballistic missiles, cruise missiles and aircraft.
2. Broader production plans
Lockheed announced a seven-year framework agreement with the U.S. Department of War in January to raise annual PAC-3 interceptor production capacity to 2,000 units from about 600. The U.S. Army awarded Lockheed a contract worth up to $58.6 billion in July to boost production. Industry executives have warned that Congress has not yet appropriated funding for the deals, which may limit contractors’ ability to invest at scale until lawmakers act.
