Raytheon awarded USD6.3 billion production contract for SM-3 interceptors

Raytheon was awarded a contract for more SM-3 interceptors, like the one shown here being launched. (US Navy)

The US Department of Defense (DOD) and Missile Defense Agency (MDA) awarded Raytheon a contract worth up to USD6.3 billion to produce Standard Missile (SM)–3 Block IB (Blk IB) interceptors, the DOD confirmed in a statement on 8 October.

The agreement spans five years, includes two additional option years, and authorises Raytheon to begin work immediately in Tucson, Arizona, and Huntsville, Alabama, the DOD said.

The agreement also “eliminates the programmatic and supply-chain friction that constrains private-sector capacity, forcing capital allocation directly into assembly lines, solid-rocket motor suppliers, and critical domestic sub-tier vendors”, the DOD said.

The contract “supports urgent replenishment of missile defence inventory,” Raytheon said in a statement.

That inventory has been depleted due to recent US operations in Iran, according to a 15 September US Congressional Budget Office (CBO) letter to US Congressman Brendan Boyle of Pennsylvania, the ranking member of the Congressional Committee on the Budget.

“Defending against Iranian ballistic missile and drone attacks consumed many costly missile defense interceptors — Patriot, Terminal High Altitude Area Defense (THAAD), Standard Missile-3 (SM-3), and Standard Missile 6 (SM-6) interceptors,” the CBO said.

For more, please see: US Navy awards Raytheon multi-year SM-6 production contract