Air Force awards Raytheon $2 billion LRSO contract

By Briana Reilly / July 1, 2021 at 5:38 PM

The Air Force has awarded prime contractor Raytheon a $2 billion engineering and manufacturing development contract for the Long-Range Standoff Weapon, the Defense Department announced today.

The expected announcement, which comes after a May 25 Defense Acquisition Board milestone B review, officially ushers in the next developmental phase for the service's new cruise missile.

Under the contract, Raytheon will perform its work in Tucson, AZ, as the LRSO moves through the manufacturing process and transitions to pilot-line readiness.

Work is expected to be completed in February 2027, according to the DOD contract announcement. Fiscal year 2021 research and development dollars were obligated at the time of the service's award.

The program has benefited from a sped-up development schedule; the service hadn't anticipated it would reach milestone B until the second quarter of fiscal year 2022. But the condensed timeline, which came after the service last spring abruptly canceled its contract with Lockheed Martin, allowed the Air Force to quicken its pace, Inside Defense previously reported.

211982