The US Department of Defense has awarded Raytheon a five-year contract valued at up to $6.3 billion to produce and sustain Standard Missile-3 Block IB (SM-3 IB) interceptors.
The contract, which includes two additional option years, is part of five landmark agreements between Raytheon and the Department of Defense announced in February to accelerate production and replenish missile defense inventories.
It follows a $24.4-billion five-year contract Raytheon won to produce Standard Missile-6 (SM-6) interceptors for the US Navy. Both are ship-launched interceptors, but the SM-3 is designed primarily to intercept ballistic missiles during midcourse flight, while the SM-6 has a broader air and missile defense role.
“This award underscores Raytheon’s commitment to increasing production of critical munitions, ensuring our customers have the defensive capabilities they need, when they need them,” Raytheon President Phil Jasper said.
“SM-3 Block IB has proven its relevance in combat and this contract helps ensure we can replenish inventories and keep pace with the evolving threats the US Navy, MDA and their partners face around the world.”
SM-3 IB
The SM-3 Block IB is a ship- and land-based interceptor designed to destroy short- to intermediate-range ballistic missiles during midcourse flight. First used in combat in 2024, it is part of the US Navy’s integrated air-and-missile defense architecture.
At an estimated $10 million to $15 million per interceptor, the Block IB is significantly cheaper than the SM-3 Block IIA, which costs an estimated $35 million to $40 million. The lower price could make it more affordable to procure in larger numbers.
The interceptor has a reported range of up to 559 miles (900 kilometers) and an engagement altitude of around 311 miles (500 kilometers). Its dual-color infrared seeker improves target discrimination, while a throttleable divert-and-attitude-control system enables precise maneuvering before impact.
