Raytheon, an RTX business, has received a $104.1 million cost-plus-fixed-fee contract to provide technical and design agent engineering for the Evolved SeaSparrow Missile and the NATO SeaSparrow Consortium missile programs.
The contract, awarded Dec. 19 by Naval Sea Systems Command, includes options that could raise the cumulative value to $884.9 million, the Department of War said. Its base period will run through Dec. 31, 2026, with performance extending through December 2030 should all options be exercised. Work will be performed primarily in Tucson, Arizona.
The award combines purchases for the U.S. Navy, which accounts for 36 percent of the work; governments participating under memoranda of agreement, representing 59 percent; and foreign military sales customers making up the remaining 5 percent.
At the time of award, approximately $39.3 million was obligated using a mix of fiscal 2026 Navy procurement, operations and maintenance, research and development, other customer funds and FMS funding.
The contract was awarded on a sole-source basis.
Why Does ESSM Remain Central to Naval Air Defense?
ESSM is a medium-range, ship-launched surface-to-air interceptor designed to counter anti-ship cruise missiles, high-speed maneuverable surface threats and low-velocity air threats. The missile, an upgrade to the NATO Sea Sparrow, is deployed across a wide range of U.S. and allied surface combatants and is integrated with multiple launch systems.
The NATO SeaSparrow Consortium manages the ESSM, with member nations jointly supporting development, production, sustainment and future upgrades.
The engineering support contract follows sustained momentum across the ESSM program. Raytheon delivered the 500th ESSM Block 2 missile to the U.S. Navy in October and continues to support production, testing and modernization efforts for both U.S. and allied fleets.
ESSM Block 2 features an active radar seeker and an enhanced guidance system, reducing reliance on ship-based illuminators and enhancing performance against advanced and maneuvering threats. Previous Navy and NATO testing has validated the system’s operational effectiveness.
