The Missile Defense Agency awarded Raytheon Company (NYSE: RTN) an undefinitized contract action for a fiscal year 2015 contract valued at $559,206,957 million for Standard Missile-3 Block IBs, which are guided missiles used by the U.S. Navy to provide regional defense against short- to intermediate-range ballistic missile threats.
Under this contract action, which was announced April 30 by the Department of Defense, Raytheon will deliver an initial quantity of 44 Standard Missile-3 Block IB all-up rounds and provide the work required to produce and deliver the third stage rocket motor reliability growth and design enhancements. The government expressed its intention to purchase additional missiles up to a total quantity of 52.
Final assembly of the SM-3 Block IB takes place at Raytheon's state-of-the-art SM-6 and SM-3 all-up-round production facility at Redstone Arsenal in Huntsville, Ala.
Deployed at sea for the first time in 2014, the SM-3 Block IB is on track for land-based deployment in Romania this year in line with the second phase of the Phased Adaptive Approach, the U.S.'s plan for missile defense in Europe.
About the Standard Missile-3
SM-3s destroy incoming ballistic missile threats in space using nothing more than sheer impact, which is equivalent to a 10-ton truck traveling at 600 mph.
Source: Raytheon Corporation (NYSE: RTN)
Date: May 4, 2015