Navy Awards $908M Contract to Raytheon for SM-6 Missiles

The U.S. Navy has awarded Raytheon a $333.3 million contract to produce Standard Missile-6, including spares and round design agents. The cost-plus-fixed-fee contract includes options that, if exercised, would bring the cumulative value of the effort to $908.1 million, the Department of Defense said.

Navy Contract Scope

The SM-6 missiles and equipment will be manufactured in Tucson, Arizona; Huntsville, Alabama; Andover, Massachusetts; and Dine, New Mexico. The anticipated completion date of the contract is October 2027 or through September 2030, including options.

The Naval Sea Systems Command serves as the contracting activity. Only Raytheon was solicited for the requirement. The RTX business is the only company that can produce the missile.

What Can the Standard Missile-6 Do?

Raytheon dubs the SM-6 as “three missiles in one” because it is developed to perform anti-air warfare, anti-surface warfare and ballistic missile defense missions. According to the company, it offers navies with flexibility because it can serve multiple functions. The weapon can be delivered in 60 surface ships.

So far, Raytheon has delivered over 500 missiles to the U.S. Navy.

In October 2022, the State Department approved the foreign military sale of SM-6 Block I missiles to the government of Japan, with Raytheon as principal contractor. The transaction was estimated to be valued at $450 million.

Raytheon also has a contract with the Navy to produce $1.03 billion worth of SM-6 missiles. Awarded in 2019, the contract has an expected end date of October 2026.

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