Raytheon wins $745 million MDA contract for SM-3 IIA interceptors
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Raytheon has been awarded a $745 million contract by the U.S. Missile Defense Agency for production and sustainment of SM-3 Block IIA interceptors. The deal follows a $115 million expansion of the company's Alabama integration facility, which is expected to boost delivery capacity by over 50%. The SM-3 IIA, developed with Japanese industry, is designed to intercept short- to intermediate-range ballistic missiles.
The Award
The Missile Defense Agency's $745 million contract covers production and sustainment of the Standard Missile-3 Block IIA interceptor. Production will take place at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama. The company recently invested $115 million to expand its Alabama integration facility, aiming to increase delivery capacity by over 50%. Raytheon's Naval Power president Barbara Borgonovi stated the SM-3 IIA is a 'cornerstone of regional defense' for the U.S. and allies.
Missile Capabilities
The SM-3 Block IIA features a larger rocket motor and an enhanced kinetic warhead compared to predecessors. It is designed to engage short- to intermediate-range ballistic missiles faster and protect larger regions. The missile is a cooperative development between Raytheon and Japanese industry. Borgonovi emphasized that sustained investments have allowed the company to increase capacity and accelerate deliveries.
What's Next
Raytheon is actively hiring to support the program at its Tucson and Huntsville sites. It remains unclear when the first deliveries under this contract will occur, as global demand for missile defense continues to shape production timelines.
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Raytheon wins $745 million MDA contract for SM-3 IIA interceptors
