Raytheon logo. The US Navy awarded a $259 million Standard Missile 2 development contract to Raytheon.

Navy Awards Raytheon $259M Standard Missile 2 Development Contract

RTX business unit Raytheon has secured a $258.7 million sole-source contract from the U.S. Navy for the engineering, manufacturing and development of the Standard Missile 2 Block IIICU all-up round.

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The cost-plus-incentive-fee contract’s value could increase to $263.1 million if the Navy exercises option periods, the Department of Defense said Tuesday.

Work will be performed in Arizona, Connecticut, Utah, Texas, Pennsylvania, New York, Florida, California, Alabama and the United Kingdom, with completion expected by September 2031.

Naval Sea Systems Command obligated $52.05 million in fiscal 2025 research, development, test and evaluation Navy funds, $18.5 million in Foreign Military Sales Canada funds and $9.07 million in fiscal 2024 RDT&E Navy funds were obligated at the time of award.

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