Lockheed Martin Wins $10 Million Army Contract for PAC-3 Guidance and Seeker Flight Tests

Lockheed Martin has received a $10.4 million U.S. Army contract for guidance processor redesign and Seeker Block V flight-test support for the Patriot Advanced Capability-3 (PAC-3) missile. The work covers system-level testing, data analysis, problem resolution and support for flight tests of the redesigned guidance processor and seeker. Army Contracting Command awarded the contract, with work to be performed in Grand Prairie, Texas, through an estimated completion date of Nov. 30, 2027.

PAC-3 Guidance Processor Redesign Details

Lockheed Martin will support system-level testing of the guidance processor redesign and Seeker Block V, analyze test data and resolve problems identified during the effort. It will also provide flight-test and post-test analysis support, according to the Army’s presolicitation description.

The award is for engineering and test support rather than an order for production missiles. Its focus is the redesigned guidance processor and seeker as they move through system testing and flight-test evaluation.

PAC-3 MSE Program Background

The Army describes the PAC-3 Missile Segment Enhancement (MSE) as a hit-to-kill interceptor intended to counter ballistic missiles, cruise missiles and aircraft. Lockheed Martin’s guidance and seeker work is proceeding alongside a substantial expansion of missile production. In September 2025, the Army announced a $9.8 billion multiyear contract for 1,970 PAC-3 MSE missiles and associated hardware for U.S. and international partners. In April 2026, it announced a further $4.7 billion contract action to support accelerated production.

Award and Contractor Background

The Army solicited one bid for the flight-test support contract and received one. The presolicitation identified Lockheed Martin Missiles and Fire Control as the proposed source, citing its technical knowledge and access to the data needed for the work.

The redesign has a documented earlier contracting history. A Defense Department acquisition report says a June 2020 modification to a Lockheed Martin PAC-3 contract added Seeker Block V and integrated guidance subsystem redesign work. A separate backward-compatibility effort was added in June 2021, and the Seeker Block V redesign was definitized in December 2022. The broader contract, which also covers PAC-3 production requirements, has a potential value of about $14.16 billion.

This award was disclosed by the DoW in its daily press release. Additional contract details will be available on HigherGov in approximately 90 days under W31P4Q27FA004 after the contract is formally disclosed by the government.