Raytheon Company (NYSE: RTN) was awarded a sole-source, cost-plus-incentive-fee contract valued at $126,000,000. The SM-3 missile is designed to destroy incoming short-, medium-, and intermediate-range ballistic missile threats by colliding with them in space, a concept sometimes described as "hitting a bullet with a bullet."
This contract modification is to procure the material required to manufacture up to 29 SM-3 Block IB missiles. Work will be performed in Tucson, Ariz., with an estimated completion date of Sept. 30, 2016.
About the Standard Missile-3
The SM-3 does not contain an explosive warhead, but instead destroys the threats using sheer impact, equivalent to a 10-ton truck traveling at 600 mph.
Source: Raytheon Corporation (NYSE: RTN)
Date: Jun 27, 2013