The Pentagon announced on October 8 that it has awarded Raytheon a multi-year contract worth up to $6.3 billion for the production and sustainment of Standard Missile-3 Block IB (SM-3 IB) interceptors. The base value of the five-year contract is $4.4 billion, with options for an additional nearly $2 billion over two more years. The Missile Defense Agency was the contracting agency for the deal.
The announcement did not specify how many missiles are under order. Production under the contract will be primarily completed at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama.
Under Secretary of Defense for Acquisition and Sustainment Michael Duffey said in a DoD release that the contract “provides production certainty to our defense industrial base, breaks sub-tier manufacturing bottlenecks, and ensures that our fleets and combatant commands have the interceptors required to dominate the battle space — air, sea or land.”
Raytheon President Phil Jasper said in a company release that “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.”
The SM-3 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 was first used in combat in 2024, according to Raytheon. The Pentagon has listed the SM-3 IB as one of the critical munitions it is looking to scale as quickly as possible.
The contract follows a framework agreement between the DoD and Raytheon in February designed to pave the way for the multi-year deal. It is part of a series of recent agreements between the government and the RTX subsidiary, including a $24.4 billion deal to accelerate production of the Standard Missile-6, a $22.9 billion contract to ramp up Tomahawk cruise missile production to 1,000 rounds a year, and a deal worth up to nearly $20.7 billion for production of the Advanced Medium-Range Air-to-Air Missile (AMRAAM).
Sources: Defence Blog · DVIDS News