The Pentagon has awarded Raytheon a five-year contract valued up to $6.3 billion for the production and sustainment of Standard Missile-3 Block IB (SM-3 IB) interceptors, the company announced Thursday. The contract includes two additional option years.
The deal, signed between Raytheon and the Department of War, supports replenishment of missile defense inventory that has been used in combat, according to a Raytheon press release. Production will be primarily completed at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama.
“SM-3 Block IB has proven its relevance in combat and this contract helps ensure we can replenish inventories and keep pace with the evolving threats the U.S. Navy, MDA and their partners face around the world,” Raytheon President Phil Jasper said in a statement.
The SM-3 Block IB is a ship-and land-based missile defense interceptor designed to defeat short-to intermediate-range ballistic missiles during the midcourse phase of flight. It uses a “hit-to-kill” method, destroying targets with sheer speed and momentum rather than explosives. The interceptor tracks targets with a two-color infrared seeker and propels itself in short bursts, according to Defense News.
The interceptor was first used in combat in 2024, when U.S. Navy destroyers USS Arleigh Burke and USS Carney fired them to intercept Iranian missiles aimed at targets in Israel, Defense News reported. It is an integral part of the U.S. Navy’s extended-range integrated air and missile defense, together with the SM-3 IIA and the rest of the Standard Missile Family, per Raytheon.
The contract is among five framework agreements Raytheon signed with the Pentagon this February, according to Defense News. The Center for Strategic and International Studies named the SM-3 Block IB among “seven critical munitions” in an April report detailing ammunition shortages, alongside Patriot missiles, Precision Strike Missiles, THAAD missiles, Tomahawk Land Attack Missiles and others.
RTX has made significant investments to expand capacity and accelerate production of critical munitions including the Standard Missile Family, the company said.
Sources: Naval News · Defense News