Raytheon corporate symbol as RTX unit

Raytheon Books $1.1B Contract Modification for Expanded Missile Production

RTX business Raytheon will manufacture additional AIM-9X Sidewinder missiles under a $1.1 billion modification of a previously awarded contract. The modification exercises options of the previous contract, which include the production of 1,756 AIM-9X-4 Block II All Up Round Tactical Missiles, with 492 for the U.S. Navy, 456 for the U.S. Air Force and 808 for foreign military sales buyers, the Department of Defense said Monday. 

Raytheon will also supply the FMS customers with 242 AIM-9X-5 Block II+ missiles’ variant. The modified contract further fills U.S. and FMS procurement of various missiles for training and testing, including 187 Captive Air Training Missiles, with 62 for the Air Force, 40 for the U.S. Navy and 85 for FMS buyers.

Other items covered in the contract modification include spare parts, support equipment, and sectionalization and maintenance kits to support both U.S. and international partners’ requirements for the missiles Raytheon will deliver.

Work Performance & Funding Distribution

The company will perform work at over 20 U.S. locations, with primary production in Tucson, Arizona and some components manufacturing in Canada and Germany. Work is expected to be completed by October 2028.

Funding obligated at the time of the award includes Navy and Air Force budget for missile procurement, operations and maintenance, and research, development, test and evaluation for fiscal year 2025, as well as their allocations for FY 2024 and 2023, with $19.6 million expiring at the current fiscal year’s end. An FMS allocation of approximately $597 million is also part of the modified contract’s funding.  

Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity of the non-competitive contract modification. It followed the initial $736.5 million U.S. Navy contract awarded Raytheon in October as part of the AIM-9X Sidewinders Lot 24 production requirements for the Navy, Air Force and U.S. Army, as well as FMS customers.

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