Raytheon, Missile Defense Agency Sign Landmark $2 Bn Standard Missile-3 Contract

Raytheon Company (NYSE: RTN) will produce and deliver SM-3® Block IB interceptors under a $2.1 billion, multi-year U.S. Missile Defense Agency contract. It is the first multi-year contract for the SM-3 program, and covers fiscal years 2019–2023.

An SM-3® Block IB interceptor launches from the USS Lake Erie during a Missile Defense Agency test designed to hit a complex, short-range ballistic missile target. (Photo: Missile Defense Agency)

SM-3 is the only ballistic missile interceptor that can be launched on land and at sea. It is deployed worldwide and has achieved more than 30 exoatmospheric intercepts against ballistic missile targets.

"This procurement deal is a win-win for government and industry," said Dr. Mitch Stevison, Raytheon Strategic and Naval Systems vice president. "Efficiencies gained from this contract will allow us to reduce costs, continue to improve the SM-3 and deliver an important capability to our military."

The Block IB variant achieved full-rate production in 2017. The company has delivered more than 400 SM-3 rounds over the lifetime of the program.

Source: Raytheon Corporation (NYSE: RTN)
Date: Mar 30, 2020