GRAND PRAIRIE, Texas - Lockheed Martin won a $10.4 million U.S. Army contract to redesign the guidance processor unit for the Patriot Advanced Capability-3 (PAC-3) missile and provide flight-test support for the Seeker Block V configuration.
The $10,439,315 cost-plus-incentive-fee contract includes system-level testing, test-data analysis, problem resolution, and flight-test and analysis support for the guidance processor unit redesign. Work will be performed in Grand Prairie, Texas, with an estimated completion date of 30 Nov. 2027.
Army Contracting Command at Redstone Arsenal, Ala., awarded the contract after soliciting one bid and receiving one offer. The Army obligated the full contract amount from fiscal 2027 missile procurement funds at award. The contract number is W31P4Q-27-F-A004.
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The effort is part of a longer-running PAC-3 engineering program that includes work on Seeker Block V and the Integrated Guidance Subsystem redesign. A Defense Department acquisition report previously documented development and cost issues involving guidance processor redesign software, although the Army's current contract announcement does not establish whether those issues relate to the latest award.
The contract comes as the Army and Lockheed Martin work to expand PAC-3 Missile Segment Enhancement (MSE) interceptor production. A January 2026 framework agreement established a goal of increasing annual production capacity from approximately 600 to 2,000 interceptors over seven years. Boeing, which supplies PAC-3 seekers, also received a seven-year contract action in October 2026 to support a planned tripling of seeker production.
PAC-3 MSE is a hit-to-kill interceptor designed to defeat tactical ballistic missiles, cruise missiles and other aerial threats. Its enhancements over earlier PAC-3 variants include a more powerful solid-rocket motor, more responsive control surfaces, and upgraded guidance software.
The Army has not publicly detailed the specific hardware or software changes required for the guidance processor redesign or established a direct connection between the work and the broader production expansion.
