Raytheon Wins Up to $6.3 Billion for SM-3s the Pentagon Planned to Stop Buying
The award backs interceptor replenishment after combat use against Iran, but the missile count is undisclosed and industry warns funding gaps could delay investment.
The award backs interceptor replenishment after combat use against Iran, but the missile count is undisclosed and industry warns funding gaps could delay investment.
Raytheon won a sole-source contract worth up to $6.3 billion to produce Standard Missile-3 Block IB interceptors, the Missile Defense Agency announced Oct. 8, Inside Defense reported. The base is $4.4 billion over five years, with nearly $2 billion in options for two more. Breaking Defense noted that the announcement did not say how many missiles are on order.
Frequently Asked Questions
What did Raytheon win on Oct. 8, 2026?
A five-year, sole-source contract worth a $4.4 billion base and up to $6.3 billion with two option years to produce and sustain SM-3 Block IB interceptors, Inside Defense reported.
How many SM-3 Block IB missiles does it buy?
Neither the Pentagon nor Raytheon disclosed a quantity or delivery schedule, Breaking Defense reported.
Where will the work be done?
Mainly at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama, according to the Department of War.
What does the SM-3 Block IB do?
Raytheon says it intercepts short- to intermediate-range ballistic missiles during the midcourse phase of flight and can be fired from ships and from land.
Is the funding secured?
Not for the wider wave of multiyear munitions deals. Reuters reported that industry executives warn a lack of congressional funding could delay investment in facilities and supply chains.
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Marcus Schuler
Marcus Schuler edits BattlePolicy, a daily defense-technology brief connecting the companies and capabilities behind modern war to the contest among Europe, the US, Russia, and China.