Raytheon (NYSE: RTN) has secured a potential $1.07B contract from the U.S. Navy to provide Standard Missile-6 all-up rounds designed to engage targets on the sea or in the air.
The sole-source contract, which contains a $1.03B initial value, is designed to address the service branch's SM-6 full-rate production requirements for fiscal 2019 through fiscal 2023, the Department of Defense said Friday.
DoD added the company will provide a round design agent, spares and flight test rounds to the Navy, and the department expects work to be finished by October 2026.
Naval Sea Systems Command is obligating $269.7M at the time of award.
The service branch's destroyer and cruiser ships use SM-6 to perform anti-air, anti-surface and missile defense strike missions.