Boeing and the U.S. Department of War (DOW) said on April 1 they reached a seven-year framework agreement to triple production of PAC-3 missile seekers, a move officials say will significantly expand air and missile defense capabilities for U.S. and allied forces worldwide.
The agreement, which also involves PAC-3 Missile Segment Enhancement (MSE) prime contractor Lockheed Martin, is being positioned as a cornerstone of the administration’s Arsenal of Freedom initiative, which is a national effort to strengthen the defense industrial base through increased domestic production and direct supplier partnerships.
Boeing-built seekers are a critical component of the PAC-3 MSE interceptor, providing active measurement data used for precision missile guidance against advanced threats including hostile aircraft, hypersonics, and ballistic and cruise missiles. The new framework directly supports a previously announced agreement with Lockheed Martin to more than triple overall PAC-3 MSE output.
“To build a true Arsenal of Freedom, we must strengthen every link in the chain,” said Michael Duffey, Under Secretary of War for Acquisition and Sustainment. “We are moving beyond the old model and forging direct partnerships with critical suppliers to ensure the entire defense industrial base is postured to expand production and deliver the decisive capabilities our warfighters need at speed and scale.”
Boeing has already invested more than $200 million since 2024 to upgrade its PAC-3 seeker production facility in Huntsville, Alabama.
“In 2025, we increased deliveries by over 30% and we’re excited for the opportunity to grow our highly skilled workforce and our presence in Huntsville as we now triple production,” said Bob Ciesla, Boeing’s vice president of Precision Engagement Systems.
Beyond production capacity, the agreement is expected to generate significant workforce growth in Huntsville, creating high-paying specialized jobs and expanding community partnerships.
Under the terms of the deal, all three parties will immediately begin a production ramp-up while negotiating toward a formal multi-year contract award later this year.