Raytheon Gets $4.43 Billion Base Missile Defense Contract, With $454.2 Million Obligated And $6.34 Billion Including Options
The Standard Missile-3 Block IB award is undefinitized, so final terms and price are still to be negotiated.
The Missile Defense Agency awarded Raytheon, an RTX business, a noncompetitive contract with a base value of $4,432,040,944 to build Standard Missile-3 Block IB interceptors, the Pentagon said in its Thursday contract announcements. Only $454,215,132 in fiscal 2026 procurement funds was obligated at award, against a total value including options of $6,342,404,516.
What the announcement says
The contract, numbered HQ0851-27-C-E001, is a new contract rather than a modification of an earlier one. The department describes it as a noncompetitive, multi-year undefinitized contract action, awarded Wednesday.
Under it, Raytheon will manufacture and assemble Standard Missile-3 Block IB All-Up-Rounds for the government. Work will be done in Tucson, Arizona, and Huntsville, Alabama, with estimated completion on Oct. 31, 2034. The Missile Defense Agency in Huntsville is the contracting activity.
The announcement lists Raytheon as based in Tucson.
Ceiling versus committed money
Undefinitized means the final terms and price are still to be negotiated, so the $4.43 billion base figure is the most the government may spend on that portion, not money Raytheon has been paid. The $454.2 million obligated at award is what is committed now.
The $6.34 billion total includes options, which the government may or may not exercise.
In Thursday after-hours trading, RTX shares were at $185.28, about 0.5% above the regular-session close of $184.32.
The next marker the announcement names is the Oct. 31, 2034 estimated completion date; the final price remains to be negotiated.
Sources
- Contracts for Oct. 8, 2026 — U.S. Department of War
- RTX (RTX) Secures $24.4 Billion Standard Missile 6 Contract — Yahoo Finance
