Raytheon, an RTX business, has won a contract worth up to $6.3 billion to build and support Standard Missile-3 Block IB interceptors, the company announced Oct. 8. The deal runs five years and carries two more option years.
RTX said the contract is one of several large deals Raytheon has signed recently with the Department of War, and that it will help restock interceptors that have been used in combat and that protect U.S. forces, allies and key infrastructure.
"This award underscores Raytheon's commitment to increasing production of critical munitions, ensuring our customers have the defensive capabilities they need, when they need them," Raytheon President Phil Jasper said in the announcement. He said the missile "has proven its relevance in combat" and that the contract will help the U.S. Navy, the Missile Defense Agency and their partners rebuild inventories.
Most of the production will happen at Raytheon plants in Tucson, Arizona, and Huntsville, Alabama. RTX said it has invested to expand capacity and speed up munitions output, Standard Missiles among them.
The SM-3 Block IB can be launched from ships or from land and is built to intercept short- and intermediate-range ballistic missiles in the middle stage of their flight. It saw its first combat use in 2024, according to RTX, and works alongside the SM-3 Block IIA and other Standard Missile variants in the Navy's missile defense system.