Raytheon Awarded $2.1B to Produce SM-3 Block IB Missile Interceptors for US, Foreign Clients

The Missile Defense Agency has awarded Raytheon (NYSE: RTN) a potential seven-year, $2.14B contract to manufacture, assemble and maintain ballistic missile interceptors for U.S. military and undisclosed international defense customers.

Raytheon will provide Standard Missile-3 Block 1B rounds under the multiyear deal covering SM-3 requirements from fiscal year 2019 through fiscal 2023, the Department of Defense said Thursday.

MDA will obligate $1.05B in procurement, defense-wide and foreign military sales funds at the time of award.

Work under the sole-sourced contract will occur in Tucson, Ariz., and Huntsville, Ala., through March 26, 2027.

SM-3 is designed to engage ballistic missiles and has been deployed at the Aegis Ashore test site in Hawaii. The interceptor can function as a land- or sea-based missile defense system.

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