Raytheon, an RTX business, announced that it had secured a five-year contract valued at up to $24.4 billion to create missile interceptors.
The contract, with the U.S. Department of Defense, would increase the availability of Standard Missile-6 (SM-6) interceptors, a munition able to conduct both offensive strikes and missile defense missions. Building on previous agreements between Raytheon and the Defense Department, the order ensures a consistent reliable supply of SM-6 interceptors for the U.S. Navy, the company said.
“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. “By continuously investing in our operations and facilities, we are removing constraints and boosting capacity to ensure we deliver this critical capability our sailors depend on.”
The contracts are renewable for an additional two years, the company said. Raytheon has invested heavily to keep up with rising demand for the interceptors. By growing its workforce, building stronger partnerships across the defense industrial base and automating production, the company said it has positioned itself to support higher output for near-term and future long-term needs.
“Our mission is to ensure our warfighters never enter a fair fight,” Michael P. Duffey, under secretary of war for acquisition and sustainment, said. “This multi-year award locks in the magazine depth and lethal dominance our forces need to prevail, while demanding our industrial base produce at war-speed.”
The SM-6 is the only combat-proven weapon capable of anti-air warfare, anti-surface warfare and ballistic missile defense. Officials said it has been successfully fired from U.S. Navy ship-based platforms and launchers on land, and has given the fleet a versatile and reliable weapon to counter threats faced by modern naval forces.