Boeing (NYSE: BA) has received an undefinitized contract action worth approximately $14.7 billion from Lockheed Martin (NYSE: LMT) to scale production and deliver PAC-3 Missile Segment Enhancement (MSE) seekers, according to a press release.

The award formalizes a previously announced seven-year framework agreement and is intended to triple PAC-3 MSE seeker production. Boeing-built seekers are used in Patriot interceptor missiles to identify, track, and engage threats including hostile aircraft, hypersonic missiles, ballistic missiles, and cruise missiles.

Production ramp-up and hiring began earlier this year following the framework agreement announcement. The contract is expected to create hundreds of direct and indirect jobs in the Huntsville, Alabama area.

Boeing said it has made capital investments to expand its PAC-3 seeker factory, strengthened supplier relationships, modernized facilities, and improved production processes ahead of the contract award.

"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.

The contract aligns with the U.S. Department of Defense's Acquisition Transformation Strategy to accelerate delivery of capabilities to military personnel.