State Dept OKs $301M SM-2 Block IIIB Missile Sale to Australia

MissileDefenseThe State Department has approved Australia’s request to procure a suite of Standard Missile-2 Block IIIB missiles and related equipment from the U.S. government under a potential $301 million foreign military sales agreement between both countries.

Raytheon (NYSE: RTN) and BAE Systems will serve as principal contractors in the FMS transaction that covers up to 80 SM-2 Block IIIB missiles, 15 MK 97 SM-2 guidance sections and MK 13 MOD 0 vertical launching system canisters, the Defense Security Cooperation Agency said Tuesday.

Australia will use the missiles in anti-aerial warfare fire tests as part of qualification trials for the naval force’s three aerial warfare destroyers that are still in the construction phase as well as defend both air and sea lines of communication in Southeast Asia, according to DSCA.

DSCA said the deal also includes logistics, technical documentation, operator manuals, and engineering support services.

The agency said it notified Congress of the potential sale Friday.

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