Raytheon secures $6.3 billion contract for SM-3 missile interceptors

Raytheon, an RTX business, has secured a contract valued at up to $6.3 billion for the production and sustainment of Standard Missile-3 Block IB (SM-3 Block IB) interceptors. The agreement with the U.S. Department of Defense spans an initial five years, with options to extend for an additional two years.

The SM-3 Block IB is a ship- and land-based interceptor designed to defeat short- to intermediate-range ballistic missiles during their midcourse flight phase. The contract aims to replenish missile defense inventories that have been utilized in combat and to meet the evolving threats faced by the U.S. Navy and the Missile Defense Agency (MDA).

Production is expected to take place primarily at Raytheon facilities located in Tucson, Arizona, and Huntsville, Alabama. Raytheon President Phil Jasper stated that the award underscores the company’s commitment to increasing the production of critical munitions to ensure customers have necessary defensive capabilities.