Boeing on Monday said it was awarded a seven-year contract worth about $14.7 billion by Lockheed Martin to scale production and deliver PAC-3 Missile Segment Enhancement (MSE) seekers, Report informs via Reuters.
PAC-3 MSE is a hit-to-kill interceptor used within the Patriot air defense system to counter ballistic missiles, cruise missiles and aircraft.
The contract award enables Boeing to triple the production of PAC-3 MSE seekers, the missile's guidance component that detects, tracks and helps intercept incoming targets.
In January, Lockheed announced a seven-year framework agreement with the US Department of War to increase the annual production capacity for its PAC-3 missile interceptors to 2,000 units a year from about 600 previously.
The production agreements are designed to entice contractors to move faster on increasing output. They are part of a broader push by the Trump administration to prioritize weapons production over shareholder returns.