Pentagon Awards $6.3 Billion Contract to Raytheon for Missile Interceptors

The Pentagon has awarded Raytheon a significant contract valued at $6.3 billion. This multi-year agreement focuses on producing Standard Missile-3 Block IB (SM-3 Blk IB) interceptors.

“Our warfighters must never face a fair fight, and the SM-3 Blk IB has proven its operational superiority to dominate any adversary across the globe,” stated Michael P. Duffey, Under Secretary of Defense for Acquisition and Sustainment.

The contract aims to ensure production certainty and address manufacturing bottlenecks. It aims to keep fleets and combatant commands equipped with necessary interceptors for use on air, sea, or land.

SM-3 interceptors target short to medium-range ballistic missiles either at sea or onshore. U.S. Navy destroyers have utilized SM-3s against Iranian ballistic threats during ongoing conflicts.

The SM-3 B variant, launched initially in 2014, includes enhancements like a two-color infrared seeker and improvements in steering and propulsion for effective targeting.

The contract extends over five years, with options for an additional two years. This initiative mitigates supply-chain constraints and supports domestic vendors vital to production.

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