WASHINGTON — The US Navy and RTX subsidiary Raytheon have inked a $24.4 billion deal designed to “accelerate” production of the Standard Missile-6 (SM-6), the Pentagon announced.
“This five-year agreement, with two additional option years, will drive faster production, increase manufacturing throughput, and deliver significant cost savings across the defense industrial base,” the Pentagon wrote in the announcement Thursday evening.
The Pentagon did not disclose how many missiles the deal covers, nor did a subsequent company announcement.
The announcement comes as the department has been looking for ways to bolster critical munition production lines and refill its stockpiles, including for the SM-6 — a Navy missile used to strike an array of targets including aircraft, ballistic missiles and maritime vessels. In February, the Pentagon and Raytheon signed a framework agreement designed to pave a path ahead for a multi-year deal and production increase.
“This agreement, coupled with the recent Tomahawk weapon system award, provides the defense industry with the long-term predictability needed to expand workforce capacity and secure critical supply chains,” the department wrote.
In mid-August, the Navy awarded Raytheon a $22.9 billion contract to ramp up production of the Tomahawk cruise missile to 1,000 rounds a year, and earlier this week the Pentagon and Raytheon inked a deal worth up to nearly $20.7 billion for production of the Advanced Medium-Range Air-to-Air Missile (AMRAAM).