Missile Defense Agency Awards Raytheon $1 Billion Standard Missile-3 IIA Contract

Raytheon was awarded the following Standard Missile-3 Block IIA contract by the Missile Defense Agency (MDA) as announced by the U.S. Department of Defense on Dec. 20, 2019.

The purpose of this contract modification is to: (1) definitize the previously awarded SM-3 Block IIA fiscal 2018 undefinitized contract action (UCA) under contract line item numbers (CLINs) 0014 and 0015 for U.S. and Foreign Military Sales (FMS) All-Up Rounds (AUR)s production with a total value of $650,638,397; (2) award the fiscal 2019 SM-3 Block IIA U.S. and FMS AURs under CLINs 0016 and 0017 for a total value of $590,322,857; and (3) establish option CLINs 0018 and 0019 for the fiscal 2020 SM-3 Block IIA U.S. and FMS AUR production for a total value of $435,978,438.

Under this modification, the contractor will provide the management, material and services associated with the procurement, manufacture and assembly for a total of 62 SM-3 Block IIA AURs, inclusive of all options. This modification increases the total cumulative face value of the contract by $1,022,573,692 from $1,467,045,869 to $2,489,619,561.

RIM-161 Standard Missile 3 (SM-3)

The RIM-161 Standard Missile 3 (SM-3) is a ship-based missile system used to intercept short- and intermediate-range ballistic missiles (SRBM, IRBM) as a part of Aegis Ballistic Missile Defense System (Aegis BMD). The missiles also have limited anti-satellite (ASAT) capability.

The newest variant, SM-3 Block IIA, is being developed and produced by the U.S. in cooperation with Japanese industry and will be deployable on land as well as at sea.

Block IIA has two distinct new features: larger rocket motors that will allow it to defend broader areas from ballistic missile threats and a larger kinetic warhead. The interceptor’s kinetic warhead has been enhanced, improving the search, discrimination, acquisition and tracking functions, to address advanced and emerging threats.

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