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The United States has awarded RTX’s Raytheon unit a multiyear contract worth up to $24.4 billion to increase production of Standard Missile-6 (SM-6) interceptors, as the Pentagon seeks to replenish munitions stocks depleted by conflicts in the Middle East.
The US Navy announced the five-year contract on Thursday, October 1. It includes options for two additional years and is aimed at ensuring a steady and reliable supply of SM-6 missiles.
The SM-6 is a multi-mission missile capable of conducting offensive strikes as well as air and missile defence operations. Raytheon says it can perform anti-air warfare, anti-surface warfare and ballistic missile defence missions.
The contract is the latest in a series of major Pentagon deals aimed at accelerating weapons production. It follows a $20.7 billion multiyear agreement with Raytheon for AMRAAM air-to-air missiles and a $58.6 billion contract with Lockheed Martin for Patriot interceptors.
The production agreements are part of a broader US effort to replenish weapons stocks following heavy use in recent military operations. Industry executives, however, have warned that Congress has yet to appropriate the necessary funds for the deals, potentially making it difficult for contractors to make large-scale investments in production capacity.
Raytheon said it has already been investing in expanding its skilled workforce, strengthening supply-chain partnerships and automating manufacturing processes to increase production.
The SM-6 contract is expected to support annual production of more than 500 missiles, according to Raytheon.
