Raytheon (NYSE: RTN) has received a potential three-year, $270.5 million contract modification to bring the total value of its Standard Missile-6 contract with the U.S. Navy to $573.2 million.
The Naval Sea Systems Command awarded the contract modification to exercise the fiscal 2016 option under the previously awarded contract, the Defense Department said Friday.
SM-6 is designed to be deployed on the service branch’s destroyers and cruisers and works to defend against unmanned aircraft systems, terminal ballistic missiles and fixed- and rotary-wing aircraft.
Contract work will occur in England and in Arkansas, Arizona, Massachusetts, Ohio, California, Texas, Alabama, Connecticut, Georgia and Pennsylvania through April 2019.
The service branch will obligate $270.5 million from fiscal 2016 weapons procurement funds at the time of award, according to DoD.
Raytheon was also awarded in June 2015 a potential $149 million contract modification to produce 74 SM-6 weapons and spares for the Navy.