Raytheon (NYSE: RTN) has been awarded a $1.02B contract modification from the Missile Defense Agency to provide a total of 62 Standard Missile-3 all-up rounds to U.S. and foreign military sales customers.
The company’s missile systems business will provide the material, management services and other support needed for the procurement, assembly and production of the SM-3 interceptors, the Department of Defense said Dec. 20.
DoD noted the modification increases the contract’s potential total value from $1.47B to $2.49B. The agency will obligate $346.7M in fiscal 2018 and fiscal 2019 defense-wide procurement funds at the time of award.
The Pentagon expects the performance period to run through March 31, 2025.
SM-3 works by using a hit-to-kill approach to engage a target via force, without the use of explosives. The interceptor is designed for use with land-based systems and maritime vessels.