Department of War Awards Raytheon $6.3 Billion Missile Contract

The Department of War and the Missile Defense Agency awarded Raytheon, an RTX business, a multi-year procurement contract valued at up to $6.3 billion. The five-year agreement, which includes two additional option years, focuses on the production and sustainment of Standard Missile-3 Block IB (SM-3 Blk IB) interceptors.

These ship- and land-based interceptors are designed to defeat short- to intermediate-range ballistic missiles during the midcourse phase of flight. The contract aims to replenish missile defense inventories used in combat and resolve supply-chain bottlenecks by directing capital to assembly lines and domestic sub-tier vendors. Production will primarily occur at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama.

Under Secretary of War for Acquisition and Sustainment Michael P. Duffey stated the agreement provides production certainty to the defense industrial base and ensures combatant commands have the interceptors required to dominate the battle space. Raytheon President Phil Jasper noted the award helps the company replenish inventories and keep pace with evolving threats facing the U.S. Navy and the Missile Defense Agency.