Raytheon awarded potential $20.7B AMRAAM missile contract

The U.S. Air Force has awarded Raytheon a potential $20.7 billion indefinite-delivery/indefinite-quantity (IDIQ) contract for the Advanced Medium-Range Air-to-Air Missile (AMRAAM) program. The contract, which runs through January 31, 2028, covers the full lifecycle of the missile system, including development, production, upgrades, and sustainment.

As an IDIQ contract, the $20.7 billion figure represents a maximum ceiling rather than a guaranteed upfront payment. The U.S. Air Force serves as the executive agent, placing task orders on behalf of various customers, including the U.S. Navy, U.S. Army, and 37 foreign military sales customers. The initial task order for AMRAAM production is valued at $1.15 billion.

An IDIQ structure allows federal agencies to establish a framework for supplies or services when ongoing needs are expected but exact quantities and delivery schedules are not yet determined. This mechanism provides flexibility for defense programs where requirements may evolve over the contract period.