Boeing has been awarded a $14.7 billion contract to triple production of a critical Patriot missile component manufactured in Huntsville, an expansion expected to create hundreds of direct and indirect jobs in the area.
The seven-year award from Lockheed Martin covers production and delivery of seekers for the Patriot Advanced Capability-3 Missile Segment Enhancement, or PAC-3 MSE, interceptor.
The Boeing-built seeker is the component that allows the interceptor to identify, track and engage incoming threats, including ballistic and cruise missiles, hypersonic weapons and hostile aircraft.
The contract formalizes a framework announced earlier this year between Boeing and the Department of War to triple seeker production. Boeing said it began increasing production and hiring in Huntsville following that agreement and expects the expansion to create hundreds of direct and indirect jobs locally.
“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,” said Steve Parker, president and CEO of Boeing Defense, Space & Security. “Our Boeing teammates could not be prouder of the role they play in protecting U.S. and allied service members, civilians and critical infrastructure worldwide.”
The award is an undefinitized contract action, meaning some final contract terms are still being negotiated.
Boeing has already invested in expanding its Huntsville PAC-3 seeker factory and said it has modernized facilities, strengthened its supplier network and improved manufacturing processes in preparation for higher production rates.
The PAC-3 MSE seeker has deep roots in Huntsville, where Boeing has produced the technology for the Patriot missile system for decades. The company employs more than 3,000 people in Alabama and has maintained a presence in Huntsville for more than 60 years.
The massive award comes amid a broader effort by the Pentagon and defense industry to sharply increase U.S. missile and missile-defense production.
Last month, L3Harris Technologies announced a contract valued at more than $6 billion from Lockheed Martin to significantly expand propulsion production for the Terminal High Altitude Area Defense system. That award calls for a new production facility and increased manufacturing of THAAD solid rocket boost motors and Liquid Divert and Attitude Control systems.
The Boeing award similarly stems from the Department of War’s push to provide defense manufacturers with longer-term commitments intended to expand production capacity and accelerate deliveries.
For Boeing, that production surge will play out in large part in Huntsville.
The company said the new PAC-3 MSE contract will support continued capital investment and hiring as it moves toward producing three times as many seekers as under previous production levels.
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