MDA advances plan for $1.9 billion buy of Raytheon-built SM-3 Block IB interceptors

February 15, 2018

Inside Defense:

The Missile Defense Agency is asking Congress for permission to negotiate a five-year contract for Aegis ballistic missile defense interceptors, a potential $1.9 billion deal with Raytheon for Standard Missile-3 Block IB guided missiles beginning in fiscal year 2019 the agency estimates would cost $306 million less than if procured annually.

MDA’s FY-19 budget request seeks authority to enter into a multiyear contract to buy 204 SM-3 Block IBs between FY-19 and FY-23, a move that comes weeks after the Pentagon acquisition executive cleared the weapon to proceed with full production.

“This multiyear contract will provide the U.S. government maximum savings in both price and delivery schedule,” MDA claims in its FY-19 budget request, which claims annual purchases of the same quantity of missiles would cost $2.3 billion.

Read the full article