Arthur McMiler
Raytheon has secured a U.S. Air Force contract valued a maximum of $3.5 billion for Production Lots 39 and 40 of Advanced Medium Range Air-to-Air Missiles, or AMRAAM. The contract includes foreign military sales to 19 U.S. allies, the Department of Defense said Thursday.
Besides missile production, the firm-fixed-price incentive, undefinitized contract action also covers delivery of AMRAAM telemetry systems, spares and other production engineering support.
Funding Details of Raytheon Contract
Work on the contract will be performed in Tucson, Arizona, with completion expected in the third quarter of fiscal year 2031. Funding obligated upon the contract award includes $621 million in FMS funds and Navy weapons procurement allocations of $113 million from the service branch’s FY 2024 budget and $190 million from FY 2025.
Other obligated funding sources are Air Force missile procurement funds of $1.3 million from FY 2023; $116 million from FY 2024; and $472 million from FY 2025. The Air Force will also tap $507,000 from its FY 2025 R&D, test and evaluation funds and $253,936 from its FY 2024 operations and maintenance funds.
$1.2B Air Force Contract for AMRAAM Production
In September 2024, the company received a potential $1.19 billion Air Force contract modification for AMRAAM’s Production Lot 38, also with FMS included.
