The U.S. Navy has awarded a $24.4 billion contract to accelerate the production of air defense and missile defense interceptors

The U.S. Navy and Raytheon, a company within RTX Corporation, have signed a $24.4 billion contract to accelerate production of Standard Missile-6 (SM-6) missiles. UNN reports this, citing Raytheon and the U.S. Navy. 

Raytheon, an RTX business, has signed a five-year contract, with options for an additional two years, worth up to $24.4 billion to supply Standard Missile-6 (SM-6) interceptors, which will significantly increase stocks of critical munitions capable of carrying out both offensive strikes and missile defense missions

The SM-6 supply contract is the latest in a series of major munitions contracts that the Pentagon has awarded this year in an effort to push contractors to ramp up production more quickly. It follows a previous multiyear agreement worth $20.7 billion for the supply of Raytheon’s AMRAAM air-to-air missiles, signed in late September, and a $58.6 billion contract for the supply of Patriot interceptors, which was awarded to Lockheed Martin. 

The company said that the SM-6 is the only combat-proven weapon capable of conducting air defense and anti-ship warfare while also providing missile defense. 

It has been successfully tested from various U.S. Navy ship platforms and ground-based launchers, providing the fleet with a versatile and highly reliable weapon to counter the full spectrum of kinetic threats faced by modern naval forces.

Acting U.S. Secretary of the Navy Hung Cao said: "Maritime power requires weapons that are produced quickly and in large quantities." 

This investment expands production and provides the firepower our military needs to fight, win, and return home safely

We would like to remind you

The U.S. Department of Defense signed a seven-year, $22.9 billion contract with RTX’s Raytheon business to significantly increase production of Tomahawk cruise missiles.