WASHINGTON — The Defense Department has awarded RTX subsidiary Raytheon a contract worth up to nearly $20.7 billion for production of the Advanced Medium-Range Air-to-Air Missile (AMRAAM), the Pentagon announced Monday.
The multi-year deal for the air defense missile spans five years with options for an additional two years. It covers orders for the US Air Force and Navy as well as 16 international customers, according to a separate Pentagon contract notice.
Roughly $240 million drawn from Air Force and foreign military sales funds was issued at the time of award, which comes as officials rush to replenish key munitions depleted by conflicts in Ukraine and the Middle East.
“This award strengthens our ability to equip the Joint Force and our allies with a proven air-to-air capability, ensuring our warfighters maintain a decisive advantage,” Pentagon acquisition chief Michael Duffey said in the announcement.
RTX has been gradually ramping up AMRAAM production, and the Defense Department says the contract “nearly” doubles the missile’s output compared to previous rates. Earlier this year among agreements for other munitions, the company reached a framework deal with the Pentagon to boost AMRAAM manufacturing to 1,900 units annually. The contract announced Monday essentially underwrites that framework.
The deal was issued as an undefinitized contract action, a mechanism that can kickstart work as final dollar amounts and quantities are ironed out. A UCA also permits early work even when there are roadblocks for appropriations — notable, since the new fiscal year on Oct. 1 will begin with a continuing resolution, and a separate reconciliation package looks in doubt.
“The Department appreciates congressional partnership in providing multiyear procurement authority for AMRAAM and looks forward to continued support for additional authority and funding that would enable sustained production and greater certainty for the industrial base in the years ahead,” the contract announcement says.
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The AMRAAM is a key air-to-air defense weapon and is jointly produced for the Air Force and Navy. The missile can also be launched from the NASAMS ground-based air defense system and has been fielded by 44 countries, according to RTX.
“We continue to make significant investments in our workforce, technology, supply chain and facilities to rapidly scale production capacity and meet surging demand from the U.S. Air Force, Navy and our international partners,” Raytheon president Phil Jasper said in a company press release.
$6 Billion For THAAD Propulsion Systems
The AMRAAM deal comes amid a wider push by the Trump administration to ramp munitions production largely through the use of multi-year contracts. The effort has also taken on a more urgent need after the war in Iran has drained some US stockpiles.
The Pentagon has previously inked framework agreements for other key munitions like the Patriot missile, and has also extended those frameworks to critical components. In July, the Defense Department reached a framework agreement with L3Harris to ramp solid rocket motors for Patriot PAC-3 missiles as well as THAAD interceptors.
Today, L3Harris announced that it was awarded an undefinitized contract from THAAD prime contractor Lockheed Martin valued at over $6 billion. The contract, spanning seven years, is expected to “quadruple” production of the THAAD interceptor’s propulsion system, L3Harris said in a press release. The company did not disclose specific production quantities.
“This contract underscores L3Harris’ demonstrated ability to quickly deliver critical defense technologies at the scale and speed required by the Department of War,” Ken Bedingfield, the president of the company’s Missile Solutions unit, said in the release.
According to L3Harris, the firm plans to build a new facility to boost THAAD solid rocket motor production.