SM-3 IB AUR Multi-year Contract

Department of War Awards $6.3 Billion Multi-Year Contract to RTX’s
Raytheon for SM-3 BLOCK IB Interceptors

The Department of War and the Missile Defense Agency (MDA) awarded Raytheon, an RTX business, a multi-year procurement contract valued at up to $6.3 billion to produce Standard Missile–3 Block IB (SM-3 Blk IB) interceptors. The agreement spans five years with two additional option years, providing multi-year procurement stability for the Joint Force’s premier ballistic missile defense capabilities.

“Our warfighters must never face a fair fight, and the SM-3 Blk IB has proven its operational superiority to dominate any adversary across the globe,” said Under Secretary of War for Acquisition and Sustainment Michael P. Duffey. “This contract provides production certainty to our defense industrial base, breaks sub-tier manufacturing bottlenecks, and ensures that our fleets and combatant commands have the interceptors required to dominate the battle space—air, sea or land.”

By anchoring the investment over a seven-year period, the Department eliminates the programmatic and supply-chain friction that constrains private-sector capacity, forcing capital allocation directly into assembly lines, solid-rocket motor suppliers, and critical domestic sub-tier vendors.

The SM-3 Blk IB was first used in 2024 to intercept Iranian ballistic missiles. This Undefinitized Contract Action authorizes Raytheon to begin work immediately in Tucson, Arizona and Huntsville, Alabama.