HUNTSVILLE, Ala. - The Missile Defense Agency (MDA) has awarded Raytheon, an RTX business, a multi-year contract valued at up to $6.34 billion to manufacture and assemble Standard Missile-3 Block IB (SM-3 IB) interceptors for U.S. missile defense.
The SM-3 Block IB uses a hit-to-kill kinetic kill vehicle rather than an explosive warhead to destroy ballistic missile targets outside the atmosphere. Its two-color infrared seeker and advanced signal processor support target discrimination, while an upgraded throttleable divert and attitude control system maneuvers the kill vehicle during the final intercept. The interceptor operates as part of the Aegis Ballistic Missile Defense system and can launch from Mk 41 Vertical Launch System cells aboard equipped Navy ships and at land-based Aegis Ashore sites.
The SM-3 IB is a ship- and land-based missile defense interceptor designed to engage short- to intermediate-range ballistic missiles during the midcourse phase of flight, outside the atmosphere. The interceptor is part of the U.S. Navy's Aegis ballistic missile defense architecture and helps defend U.S. forces, allies, and critical infrastructure against ballistic missile threats.
Raytheon says the contract supports replenishing missile defense inventories and builds on the company's investments to expand production capacity for the Standard Missile family.
The noncompetitive, undefinitized contract action has a base value of approximately $4.43 billion and a potential total value of $6.34 billion, including options. The MDA is obligating $454.2 million in fiscal 2026 procurement funds at the time of award.
Work will be performed in Tucson, Ariz., and Huntsville, Ala., with completion estimated for 31 Oct. 2034. Raytheon describes the agreement as a five-year contract with two additional option years that supports interceptor production and sustainment.
