WASHINGTON, D.C. — RTX Corp. has secured a U.S. missile defense contract worth up to $6.3 billion to manufacture Standard Missile-3 Block IB interceptors, providing its Raytheon business with a multiyear production commitment intended to expand manufacturing capacity and strengthen the domestic defense supply chain.
The Department of War and the Missile Defense Agency awarded the agreement for an initial five-year period with two additional option years, establishing a longer-term procurement framework for the ballistic missile defense system.
The contract authorizes Raytheon to begin work immediately at its facilities in Tucson, Arizona, and Huntsville, Alabama.
The award is structured as an undefinitized contract action, allowing production activities to proceed while final contractual terms are established.
The SM-3 Block IB is a missile interceptor designed to destroy ballistic missile threats outside Earth’s atmosphere. The system is used in missile defense operations to counter incoming ballistic missiles during the midcourse phase of flight.
The agreement is intended to provide more predictable demand for Raytheon and its suppliers, supporting investments in production facilities, solid-rocket motor manufacturing and other components needed to increase interceptor output.
Michael Duffey, under secretary of war for acquisition and sustainment, said the contract would provide “production certainty to our defense industrial base” while addressing manufacturing constraints among lower-tier suppliers.
The procurement arrangement is also intended to reduce supply-chain disruptions that have limited the industry’s ability to expand production capacity.
By extending purchasing commitments across multiple years, the government aims to give manufacturers and component suppliers greater visibility into future demand, allowing them to plan equipment investments and production schedules.
For RTX, the agreement represents a substantial potential source of revenue for its Raytheon defense business and reinforces its position as a supplier of ballistic missile interceptors to the U.S. military.
The contract also advances the government’s effort to expand domestic missile manufacturing capacity while maintaining supplies of interceptors for naval forces and combatant commands.
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