Five-year agreement with Raytheon includes an option for two additional years
The US Navy and Raytheon, a subsidiary of RTX, have signed a $24.4 billion contract to accelerate production of the Standard Missile-6 (SM-6), the Pentagon announced.
The agreement “will drive faster production, increase manufacturing throughput, and deliver significant cost savings across the defense industrial base,” the department said Thursday evening. The contract runs for five years, with an option to extend it by two more.
Pentagon does not disclose the number of missiles
The Pentagon did not say how many missiles the contract covers. Raytheon’s subsequent announcement did not provide a quantity either.
The SM-6 is a US Navy missile designed to engage a wide range of targets, including aircraft, ballistic missiles and ships. The deal is part of the Pentagon’s broader effort to expand production of critical munitions and replenish its stockpiles.
Deal follows contracts for Tomahawk and AMRAAM missiles
In February, the Pentagon and Raytheon signed a framework agreement that paved the way for a multiyear contract and increased production.
In mid-August, the Navy awarded Raytheon a $22.9 billion contract to raise Tomahawk cruise missile production to 1,000 units a year. Earlier this week, the Pentagon and Raytheon signed a deal worth up to nearly $20.7 billion for production of AMRAAM air-to-air missiles.
The Pentagon said multiyear contracts give the defense industry the predictability needed to expand its workforce and secure critical supply chains.
