Air Force awards Lot 32 contract for domestic, foreign AMRAAM procurement

The Air Force recently awarded a $532.1 million production contract to Raytheon for Lot 32 of its Advanced Medium-Range Air-to-Air Missile.

"Fiscal [year] 2018 production funds in the amount of $308 million; FY-18 research and development funds in the amount of $3.6 million; and foreign military sales funds in the amount of $211.6 million are being obligated at the time of award," the March 23 Defense Department contract announcement states.

Raytheon's latest award includes missile sales to Japan, Kuwait, Poland, Indonesia, Qatar, Germany, Australia and the United Kingdom, according to DOD. The Air Force's FY-19 budget documents show plans to purchase 205 AMRAAMs for the service and 245 missiles for foreign customers in FY-18. The Navy also procures the weapon.

Each unit costs about $1.5 million, and production will last until Jan. 31, 2021.

Last week's contract came just three months after Raytheon received $634.2 million to build Lot 31. The Air Force currently plans to spend $13.2 billion on more than 12,800 AMRAAMs over the life of the program.

In the FY-18 defense spending bill enacted March 23, Congress appropriated $264.3 million to the Air Force's AMRAAM program, noting the total is $40 million less than requested because the service needs to rephase its missile lots due to delayed upgrades.

The AMRAAM program office adjusted its FY-18 and FY-19 production quantities so it can add improvements made through the Form, Fit, Function Refresh effort more smoothly, after that upgrade initiative was delayed. The program faces parts limitations with another processor replacement effort as well.