The U.S. Navy has awarded Raytheon‘s (NYSE: RTN) missile systems business a potential $652.8 million contract to fund the full-rate production of Standard Missile-2 systems and spare parts for the service branch and its allied foreign navies in fiscal 2017.
The Defense Department said Friday the contract will run through March 2022 and includes foreign military sales to the governments of Australia, Japan, Korea and Netherlands.
SM-2 is a fleet-area air defense weapon designed to hit anti-ship missile from approximately 90 nautical miles out and aircraft threats to an altitude of up to 65,000 feet.
DoD noted the obligated amount of $617.1 million at the time of award is from the Navy’s FY 2017 operations and maintenance; memorandum of understanding; and FMS funds.
Contract work will occur at various locations in Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Massachusetts, Missouri, New Hampshire and the Netherlands.