The Missile Defense Agency has awarded Raytheon (NYSE: RTN) a $543, 337, 650 million contract modification to build and assemble 17 Standard Missile-3 units in the block IIA configuration over five years.
This modification increases the total face value of a contract awarded in July for SM-3 long lead material from the initial $87, 038, 436 base value to $630, 376, 086, the Defense Department said Tuesday.
Raytheon will receive $10, 000, 000 in fiscal year 2016 research, development, test and evaluation funds at the time of award through the new modification.
MDA and Raytheon are partnering with Japan to develop SM-3’s Block IIA variant with a larger rocket motor and kinetic warhead from previous configurations with the goal to defend against ballistic missiles from adversaries.
The first flight test of SM-3 Block IIA took place in July of this year.
Block IIA missiles are also intended as the centerpiece of Europe’s missile defense system and scheduled to be deployed at sea and on land in Poland by 2018, the company says.