The U.S. Air Force has awarded Raytheon (NYSE: RTN) a $77.3 million contract option for the low-rate initial production of lot 4 Small Diameter Bomb II munitions.
Raytheon’s missile systems business will manufacture 570 SDB II units along with 524 single and dual weapon containers under the exercised option, the Defense Department said Tuesday.
The sole-source award will also fund 20 production reliability incentive demonstration effort captive vehicles, 24 SDB II lot 3 weapon load crew trainers, conventional munitions maintenance trainers and supplementary data.
The Air Force will obligate the full amount of the contract option from its fiscal 2017 and fiscal 2018 missile procurement funds at the time of award.
Work is scheduled to be complete by July 31, 2020.