RTX secures $333 million SM-6 award

Raytheon has received a $333 million Navy contract to produce the Standard Missile-6 block IA variant in an award that could be worth over $900 million if all options are exercised, according to a Pentagon contract announcement.

Production work under the initial award is expected to conclude by 2027, according to a separate RTX announcement, which highlights a March 2024 at-sea demonstration in which an SM-6 missile was used to intercept a medium-range ballistic missile target.

Deployed on a variety of Navy ships, the SM-6 is capable of over-the-horizon, anti-air and anti-surface missions in addition to ballistic missile defense, the company notice continues. The missile has played a significant role in ship defense during ongoing Red Sea operations and has been expended at high rates.

“SM-6 has a proven performance, and this contract is an important step for providing this urgently needed weapon to our armed forces," said Barbara Borgonovi, president of naval power at Raytheon, in a statement included in the release.

The Navy previously sought multiyear procurement authority for the SM-6 during the fiscal year 2024 budget cycle, presenting Congress with plans to procure as many as 825 SM-6 Block IA missiles between FY-24 and FY-28 -- a deal the Navy said would yield $508 million or 13.6% in savings compared to single-year contracts.

Though lawmakers approved a similar multiyear procurement request for the Naval Strike Missile, they denied the SM-6 proposal at least in part because RTX had fallen behind on missile production covered under a prior block buy contract.

Without multiyear authority, the Navy is anticipating higher SM-6 unit costs under FY-24 and FY-25 single-year contracts, a service spokesperson told Inside Defense in July.