Raytheon nets $2.1 billion deal for US Navy’s SM-3 Block missile variants

Raytheon has received a $2.13 billion contract modification to extend its sustaining engineering and product support services for the Standard Missile-3 (SM-3) program.

According to the Pentagon’s announcement, under this modification, the contractor will provide the management, material, and services associated with the sustaining engineering and product support services of the missile variants.

The contracted work will be carried out at Raytheon facilities located in Tucson, Arizona, and Huntsville, Alabama. The performance period for this effort spans nearly a decade, beginning on October 30, 2020, and continuing through October 29, 2029.

The Missile Defense Agency (MDA), headquartered in Huntsville, Alabama, is overseeing the contract as the responsible contracting authority. The long-term nature of this agreement highlights the strategic importance of the SM-3 program in U.S. and allied missile defense capabilities.

The SM-3 is a ship-based missile, currently used by the US Navy to intercept short to intermediate-range ballistic missiles and dismantle incoming ballistic missile threats. The missile is sometimes described as a “bullet that hits a bullet.”

The contract value has been increased from approximately $1.20 billion to $3.33 billion.

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