Pentagon, Raytheon ink up to $6.3 billion multi-year contract for SM-3 IB missiles
The Missile Defense Agency awarded Raytheon a multi-year contract worth up to $6.3 billion to produce Standard Missile-3 Block IB interceptors. The deal features a $4.4 billion base and covers five years of production, with two additional option years. Work is split between facilities in Tucson and Huntsville. The contract aims to replenish U.S. missile interceptor stocks and ensure steady production of the air defense munitions used in combat.
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- ✓ The contract for SM-3 Block IB interceptors is valued at up to $6.3 billion.
- ✓ The deal includes a $4.4 billion base.
- ✓ The procurement period is five years with two additional option years.
- ✓ Production is primarily located in Huntsville and Tucson.
What changed
The Pentagon formalized a multi-year procurement contract with a $4.4 billion base and a $6.3 billion ceiling for SM-3 Block IB missiles.
Live updates
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Pentagon awards Raytheon up to $6.3 billion for SM-3 Block IB interceptors
The Missile Defense Agency awarded Raytheon a multi-year contract worth up to $6.3 billion to produce Standard Missile-3 Block IB interceptors. The deal features a $4.4 billion base and covers five years of production, with two additional option years. Work is split between facilities in Tucson and Huntsville. The contract aims to replenish U.S. missile interceptor stocks and ensure steady production of the air defense munitions used in combat.
Why it matters
SM-3 interceptors serve as the core of U.S. and NATO missile defense. This agreement follows a previous framework deal between the Department of Defense and Raytheon to increase production capacity. The move addresses concerns regarding munitions shortages following a war with Iran.
What is confirmed
- The contract for SM-3 Block IB interceptors is valued at up to $6.3 billion.
- The deal includes a $4.4 billion base.
- The procurement period is five years with two additional option years.
- Production is primarily located in Huntsville and Tucson.
- The contract is intended to replenish interceptors used in combat.
Still unconfirmed
- The contract will bring hundreds of high tech jobs to McKinney.
- The contract includes options for an additional $2 billion over two years according to Under Secretary of Defense for Acquisition and Sustainment Michael Duffey.
What to watch next
- Activation of the two optional contract years
- Updates on production volume increases at Tucson and Huntsville sites
confidence 95%Sources used for this update (22)
- www.yahoo.com — Yahoo
- Breaking Defense — Pentagon, Raytheon ink up to $6.3 billion multi-year contract for SM-3 IB missiles
- Defense News — Pentagon, Raytheon sign $6.3B deal to replenish US missile interceptor supply
- U.S. Department of War (.gov) — Contracts for Oct. 8, 2026
- KOLD — Federal government awards $6.3 billion contract to Raytheon
- RTX — News | RTX's Raytheon awarded $6.3 billion multi-year contract for SM-3 IB interceptors
- WFAA — New Pentagon contract to bring hundreds of high tech jobs to McKinney
- breakingdefense.com — Pentagon, Raytheon ink up to $6.3 billion multi-year contract ...
- raytheon.mediaroom.com — Raytheon: RTX's Raytheon awarded $6.3 billion multi-year ...
- www.armyrecognition.com — Raytheon Secures Up to $6.3B SM-3 Block IB Contract to ...
- finance.yahoo.com — RTX's Raytheon wins up to $6.3 billion US missile contract
- www.timesnownews.com — 1. Pentagon’s $6.3 Billion Move To Replenish US Missile ...
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