TUCSON, Ariz. / HUNTSVILLE, Ala. — The U.S. Department of War (DoW) and the Missile Defense Agency (MDA) awarded a multi-year contract valued at up to $6.3 billion to Raytheon, an RTX business, on October 8, 2026. The procurement agreement covers the production, delivery, and lifecycle sustainment of Standard Missile-3 Block IB (SM-3 IB) exo-atmospheric interceptors.
The multi-year structure encompasses a five-year base period with options extending through two additional years. Formally executed as part of recent landmark procurement frameworks between the Department of War and Raytheon, the contract addresses urgent stockpile replenishment following operational combat deployments across the U.S. Navy surface fleet and Aegis Ashore sites. Primary manufacturing and assembly operations will be executed across Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama.
TECHNICAL SPECIFICATIONS: STANDARD MISSILE-3 BLOCK IB (RIM-161C SM-3 IB) 
* Lead Contractor: Raytheon (An RTX Business)
* Primary Manufacturing Locations: Tucson, AZ & Huntsville, AL
* Procuring Entities: U.S. Department of War (DoW) & Missile Defense Agency (MDA)
* Contract Value & Scope: Up to $6.3 Billion (5-year base duration + 2 option years) for production and fleet sustainment
* System Classification: Ship-based (Aegis Combat System / Mk 41 VLS) & Land-based (Aegis Ashore) Exo-Atmospheric Ballistic Missile Defense Interceptor
* Operational Engagement Envelope:
* Target Class: Short-Range (SRBM), Medium-Range (MRBM), and Intermediate-Range Ballistic Missiles (IRBM)
* Intercept Phase: Midcourse exo-atmospheric flight phase (outside Earth’s atmosphere)
* Guidance, Target Acquisition & Kill Vehicle:
* Kinetic Warhead (KW): Hit-to-kill hit mechanism destroying threat re-entry vehicles via kinetic impact energy
* Target Seeker: Advanced Two-Color Infra-Red (2CLR) seeker array for enhanced target discrimination against decoys/debris
* Attitude & Control System: Throttleable Divert and Attitude Control System (TDACS) providing precise pulse maneuvering during final intercept
* Fleet Integration & Strategic Positioning:
* Integrated Architecture: Operates in tandem with SM-3 Block IIA, SM-6, and SM-2 Block IV variants within the Aegis BMD framework
* Combat Proven Baseline: First operational combat engagements executed in 2024 to defend against regional ballistic missile threats
* Capacity Investment: Supported by internal RTX manufacturing line expansions to accelerate delivery throughput for U.S. and allied forces
