Five-year agreement aims to expand production and sustainment of a key naval and land-based ballistic missile defence system.
Raytheon, an RTX business, has been awarded a contract valued at up to $6.3 billion to manufacture and sustain Standard Missile-3 Block IB (SM-3 IB) interceptors. RTX and the US Department of War announced on 8 th October that the contract is for five years with two option years. The SM-3 IB missile is a short- to intermediate-range ballistic missile defence interceptors, and is deployed as part of the US and allied missile-defence network to shoot down mid-course flight phase targets during the mid-course phase of flight. The SM-3 IB missile can be launched from Ships or land-based missile launchers to provide integrated air and missile defence coverage.
The deal is designed to accelerate the replenishment of interceptor inventories and offer more stability for production and sustainment. Raytheon said most work will be performed at its sites in Tucson, Arizona, and Huntsville, Alabama. The company also announced investments to increase production capacity of the broader Standard Missile family. The contract comes amid a rising demand for missile defence systems among governments reassessing stockpiles, manufacturing capacity and protection for armed forces and strategic sites. A maximum contract ceiling of $6.3 billion, however, does not equate to an expectation that the entire sum will be spent straight away.
Increased production of complex interceptors demands specialised components, testing facilities and supply chain. To increase throughput, it will not be enough simply to speed up assembly; suppliers and manufacturers will need to meet demanding quality and performance standards. The deal underscores the need to maintain military industrial capacity as missile technology developers, as armed forces search for credible ballistic missile defences.
