US and Raytheon gets $3.3B SM-3 missile defense deal

Raytheon has secured a $2.13 billion contract modification to continue sustaining engineering and product support services for the Standard Missile-3 (SM-3) program, the Pentagon announced.

The total value of the contract now stands at $3.33 billion, up from its previous value of $1.19 billion.

According to a statement from the Department of Defense, the modification supports ongoing work on multiple variants of the SM-3 for both U.S. forces and Foreign Military Sales (FMS) partners.

The Standard Missile-3 is a key element of the Aegis Ballistic Missile Defense system and is used to intercept short- to intermediate-range ballistic missile threats outside the earth’s atmosphere.

Under the terms of the deal, Raytheon will provide management, materials, and services required for the missile system’s sustaining engineering. The work will be carried out in Tucson, Arizona, and Huntsville, Alabama. The contract extends through October 2029.

The Missile Defense Agency, based in Huntsville, Alabama, is managing the contract.

Raytheon, a subsidiary of RTX Corporation, is the prime contractor for the SM-3. The missile’s proven track record in intercepting high-altitude ballistic threats has made it a sought-after capability among U.S. allies.