Raytheon will build Standard Missile-6 interceptors for the U.S. Navy under a multiyear award valued at as much as $24.4 billion, the Navy announced Thursday, Oct. 1.
The deal runs five years and includes two additional option years. According to the Navy, the goal is a dependable, ongoing flow of SM-6s. Raytheon says the missile can handle anti-air warfare, anti-surface warfare and ballistic missile defense. The $24.4 billion figure is the contract's maximum value.
"SM-6's multi-mission capability is vital to our customer, and Raytheon is intensely focused on meeting the demand," Raytheon President Phil Jasper said in a statement reported by Naval News.
The award follows a provisional multiyear agreement, reached in late September and valued at up to $20.7 billion, for more of Raytheon's AMRAAM missiles. Defense News reported that the Pentagon has pursued several big munitions deals this year as it works to rebuild stockpiles. The outlet also reported that industry executives have cautioned that lawmakers have yet to fund the agreements.
Raytheon, a unit of RTX, employs about 2,500 people in Richardson, according to the city's annual financial report.