Raytheon Awarded $2.3B Missile Defense Agency Contract

December 23, 2015

Product Design and Development:

Raytheon Missile Systems will be given a $2.3 billion modification to a Missile Defense Agency contract for the building, testing, and delivery of 52 Standard Missile 3 (SM-3) Block IB missiles, the United States Department of Defense announced in its Friday digest of work contracts.

The sole-source fixed-price-incentive, firm-fixed-price, and cost-plus-fixed-fee contract also tasks Raytheon with providing All-Up-Round support and recertification work. The modification combines the previous contract, a $540.9 million deal for 44 SM-3 Block IB missile that went into effect April 30, with the procurement of eight additional missiles, bringing the total to 52 SM-3 Block IB missiles. The labor will be conducted in Tucson, Ariz. and Huntsville, Ala., and should be completed on Sept. 30, 2021. Nearly $175 million in funding will be assigned with the award.

Raytheon will be awarded a $77 million Air Force contract for work needed to operate, maintain, and sustain the Cobra Dane System. According to the DoD, the contract involves all functions that are critical to weapon system readiness. The labor will be conducted at Eareckson Air Station, Ala. Each delivery or task order related to the contract must be finished before Dec. 31, 2017…

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