Raytheon Secures $6.3B Multiyear Contract to Build SM-3 Interceptors for Missile Defense Agency

The U.S. Department of War and the Missile Defense Agency awarded Raytheon a multiyear contract worth up to $6.3B to build and sustain Standard Missile-3 Block IB interceptors. The five-year agreement includes two option years and was issued as an undefinitized contract action. This structure permits immediate production in Tucson, Arizona, and Huntsville, Alabama before final pricing is negotiated. The SM-3 Block IB destroys short- to intermediate-range ballistic missiles in space by hitting them directly. The U.S. Navy recently used the platform in combat to intercept Iranian missiles in April 2024. The Pentagon stated the deal provides necessary production certainty to break sub-tier manufacturing bottlenecks across solid rocket motor suppliers and smaller subcontractors. This latest award follows a separate $24.4B contract for SM-6 production issued to Raytheon last week under a broader framework established in February. "Our warfighters must never face a fair fight, and the SM-3 Blk IB has proven its operational superiority to dominate any adversary across the globe." — Michael P. Duffey