Navy awards Raytheon $1.03 billion multiyear contract for SM-6

The Navy today announced a $1.03 billion multiyear contract award to Raytheon for the Standard Missile-6.

The award spans fiscal years 2019 through 2023 and with options could be worth up to $1.08 billion, according to the contract announcement.

The contract includes "all up rounds, flight test rounds, spares and round design agent," the announcement reads.

Inside Defense reported in October that Raytheon had come to a handshake agreement with the Navy for the SM-6 program.

The Navy's FY-20 budget documents describe the SM-6 as "the primary extended-range air defense weapon" for Navy cruisers and destroyers that are outfitted with Lockheed Martin's Aegis Combat System. The missile was originally built as a ship-launched interceptor, but the Pentagon in 2016 announced plans to provide the SM-6 with an offensive anti-ship capability.