RaytheonÂ (NYSE: RTN) has received a $614.5 million contract modification from the Missile Defense Agency to produceÂ 17 Standard Missile-3 weapons and provide support services.
The Defense Department said Monday the modification covers SM-3 Block IIAÂ missiles, containers,Â production support, engineering efforts, obsolescence monitoring, technical baseline engineering, quality assurance and audit support.
Work will occur inÂ Tucson, Arizona, through March 2020.
MDA awarded the modification to definitize a $543.3 million contract action issuedÂ in December 2015, reducing the total cumulative value of the contract to $619.6 million from $630.7 million, DoD added.
The agency will obligateÂ $45 million in fiscal 2017 research, development, test and evaluation funds at the time of award of the modification.
SM-3 missiles are designed to intercept short- to intermediate-range ballistic missiles.