Arthur McMiler 
- Raytheon receives potential $6.3B multiyear contract for SM-3 Block IB missile defense interceptors
- The award supports urgent restocking of a combat-proven interceptor
- DOW entered into SM-3 component production agreements with Raytheon and Boeing in August
RTX said Thursday its Raytheon business has received a contract worth up to $6.3 billion over five years, plus two option years, to produce and sustain Standard Missile-3 Block IB, or SM-3 IB, interceptors.
According to RTX, the award falls under its recent agreements with the Department of War and backs urgent restocking of an interceptor that U.S. forces have fired in combat. In August, DOW signed framework agreements with RTX and Boeing to expand production of SM-3 IB and SM-3 Block IIA components, including avionics and ejector assemblies.
“These agreements ensure our Warfighters get the munitions they need to win,” Michael Duffey, under secretary of war for acquisition and sustainment and a 2026 Wash100 Award winner, said at the time. He added that the department is placing the defense industrial base “on a wartime footing.”
What Is SM-3 Block IB?
SM-3 IB, which can launch from ships or land sites, engages short- and intermediate-range ballistic missiles during midcourse flight. The interceptor saw its first combat use in 2024 and, with SM-3 IIA and other Standard Missile variants, forms a core element of the Navy’s extended-range defense against air and missile threats.
Raytheon President Phil Jasper said the interceptor has demonstrated its value in combat. He said the contract will help rebuild stockpiles as threats facing the Navy, the Missile Defense Agency and their partners continue to evolve.
How Is Raytheon Expanding Standard Missile Production?
RTX said it has made investments to boost capacity and speed output across the Standard Missile family. Most of the contract work will take place at Raytheon sites in Tucson, Arizona, and Huntsville, Alabama.
The award follows a $24.4 billion Navy multiyear contract for SM-6 production the DOW announced Oct. 1. In August, Raytheon received a $745.4 million MDA contract for SM-3 Block IIA all-up rounds for the United States and Japan. In September, it also landed a potential $20.7 billion AMRAAM production contract.
