- Raytheon’s SM-6 contract covers five years with two additional option years
- Department of War expects the deal to expand manufacturing throughput and generate cost savings
- The award is part of broader investments intended to strengthen critical supply chains and the defense industrial base
Raytheon, an RTX business, has booked a multiyear $24.4 billion contract from the U.S. Navy to produce Standard Missile-6 munitions.
What Is the Scope of Raytheon’s SM-6 Contract?
The Department of War said Thursday the award is intended to speed production and expand manufacturing throughput for the anti-air and anti-surface missile. The five-year agreement, which includes two option years, is also intended to deliver cost savings for the defense industrial base.
According to DOW, the SM-6 agreement and the recent $22.9 billion Tomahawk award give industry the long-term predictability to grow its workforce and secure critical supply chains. The department said the two investments are meant to keep warfighters equipped to maintain global maritime superiority.
The contract follows a series of production agreements between Raytheon and DOW. In February, the company agreed to raise annual SM-6 production to more than 500 interceptors under a broader set of multiyear framework agreements.
What Did DOW Say About the SM-6 Award?
“Our mission is to ensure our warfighters never enter a fair fight,” said Michael Duffey, under secretary of war for acquisition and sustainment.
The 2026 Wash100 Award winner added that the multiyear award will provide the U.S. military with additional SM-6 inventory while requiring the industrial base to produce the weapons at a faster pace.
Raytheon said it has also been investing in its operations and facilities, growing its skilled workforce, strengthening relationships with defense suppliers and automating production to support higher SM-6 output.
