RaytheonÂ (NYSE: RTN)Â has received a potential three-year, $267.2M contract modification to produce, test and deliver 20 Standard Missile-3 Block IIAÂ weaponsÂ to the Missile Defense Agency.
The modification includes the production of four SM-3 Block IIA missiles for Japan under a foreign military sales program and increases the contractâs potential value from $1.2B to $1.46B, the Department of Defense said Friday.
SM-3 Block IIAÂ is a weapon system the U.S. Navy uses to target short- to intermediate-range ballistic missiles and a key part of the European missile defense system. It has a larger kinetic warhead and rocket motors built to home in on ballistic missile threats.
MDA will obligate $209M in fiscal 2018 procurement funds and $7.6M in FMSÂ funds at the time of award.
Work will occur in Tucson, Ariz., and Huntsville, Ala., through December 2022.