Overview
- The Missile Defense Agency awarded Raytheon a roughly $745.4 million noncompetitive, undefinitized contract Friday to manufacture SM‑3 Block IIA All‑Up Rounds for U.S. and Japanese forces.
- At the time of award the agency obligated about $275.6 million in FY2026 U.S. procurement funds and Japan provided approximately $277.7 million through a Foreign Military Sales payment, committing more than $553 million up front for the effort.
- Work is split between Raytheon facilities in Tucson, Arizona and Huntsville, Alabama, with the contract carrying an estimated completion date of Feb. 28, 2031 and no quantity of missiles specified in the announcement.
- Separately announced the same week, Raytheon received a $536 million modification for the TOW Weapon System that raises that contract’s cumulative value to $750.8 million, producing about $1.3 billion in combined DoD awards and near‑term revenue for the company.
- The Block IIA is a larger, faster hit‑to‑kill interceptor developed with Mitsubishi Heavy Industries that can travel above Mach 10 and extend range beyond 2,500 km, and coverage notes reported operational use in 2024 and earlier this year without independent verification, underlining the program’s strategic role for U.S. and Japanese missile defense and its supply‑chain implications.