Raytheon receives $241 million contract for SM-3 Block IIA

Posted by Skyler Frink

TUCSON, Ariz., Dec. 12, 2011. The Missile Defense Agency awarded Raytheon Company (NYSE: RTN) a $241 million contract modification for continued engineering design and development work on the Standard Missile-3 Block IIA.

The SM-3 Block IIA is a co-development effort between the U.S. and Japan and the cornerstone of phase three of the administration's Phased Adaptive Approach. The SM-3 Block IIA's larger rocket motors and kinetic warhead will allow for a large defended area, protecting both the U.S. and its allies from ballistic missiles.

SM-3 is being developed as part of the Missile Defense Agency's sea-based Aegis Ballistic Missile Defense System. The missiles are deployed on Aegis cruisers and destroyers to defend against short- to intermediate-range ballistic missile threats in the midcourse phase of flight. Raytheon has delivered more than 130 SM-3s to U.S. and Japanese navies ahead of schedule and under cost.