US Navy awards Raytheon SM-6 contract worth up to $24.4bn — Defense News

The US Navy has awarded RTX’s Raytheon division a multiyear contract worth up to $24.4 billion to produce Standard Missile-6, or SM-6, interceptor missiles. The agreement is designed for five years and includes an additional two years of options.

SM-6 deliveries

As Defense News reports, the contract is intended to provide the Navy with a stable and reliable supply of SM-6 missiles. These missiles can be used to strike targets, for air defense, and for missile defense.

Raytheon calls the SM-6 the only missile that has been tested in combat conditions and is capable of carrying out air warfare, anti-surface warfare, and ballistic missile defense missions. They have been launched from various US Navy ships, as well as from ground-based launchers.

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Production ramp-up

The SM-6 contract was one of several major munitions orders the Pentagon is advancing this year to increase production rates. At the end of September, Raytheon received a preliminary multiyear agreement worth $20.7 billion for AMRAAM air-to-air missiles, while in July Lockheed Martin received a $58.6 billion contract for Patriot interceptors.

The Pentagon seeks to replenish munitions stockpiles depleted by conflicts in the Middle East. At the same time, defense industry executives warned that the US Congress has not yet allocated funding for these agreements, so companies may be unable to make large-scale investments in production components and capacity until lawmakers make a decision.

RTX said it has invested in expanding its skilled workforce, partnerships within the defense industrial base, and production automation in order to significantly increase output for current and future needs.