The Air Force has awarded missile makers Raytheon and Lockheed Martin $3.5 billion and about $4.3 billion, respectively, to boost deliveries of the vendors' advanced missile products, according to a July 31 Pentagon announcement.
Lockheed Martin builds its AGM-158C Long Range Anti-Ship Missile and AGM-158B Joint Air-to-Surface Standoff Missile for the Air Force and Navy as part of a large-lot multiyear procurement contract to buy the weapons concurrently.
The new $4.3 billion award for JASSM and LRASM brings the fixed-price contract’s cumulative value to about $9.5 billion, per the announcement. The money will come from fiscal years 2023, 2024 and 2025 appropriations. The Defense Department in this contract also approved foreign military sales of both weapons to Poland, Netherlands, Japan and Finland.
Yesterday’s $3.5 billion fixed-price award to Raytheon for additional AIM-120 Advanced Medium Range Air-to-Air Missiles marks the program’s largest contract award yet, according to the company.
“As global conflicts intensify and air threats become more sophisticated, AMRAAM continues to give allied forces a decisive edge in combat,” Sam Deneke, president of air and space defense systems at Raytheon, said in a statement. “This award underscores the critical role that the fifth-generation AMRAAM plays in maintaining air superiority and will ensure service members have the advanced technology needed to stay ahead of adversary threats.”
The $3.5 billion will mostly be derived from FY-23, -24 and -25 funds. It allows foreign military sales to Denmark, Belgium, Japan, Netherlands, Canada, Finland, Germany, Hungary, Spain, Poland, Sweden, Taiwan, Lithuania, the United Kingdom, Australia, Switzerland, Ukraine, Israel, and Kuwait.
The Air Force in FY-24 sought to produce AMRAAM’s under the MYP strategy, like it does with JASSM and LRASM, but Congress ultimately denied that request.
A similar request in the service’s FY-25 budget was also blocked by lawmakers, banning the Air Force from asking again in next year’s proposal.
“The FY-25 continuing resolution prohibited new MYP contracts in FY-26 except for a small number of programs authorized by name,” an Air Force spokesperson told Inside Defense last month. “AMRAAM was not one of the programs specifically authorized to enter into an MYP contract in FY-26.”
The MYP strategy is typically wielded by the Pentagon to send an early demand signal to industry, drive cost savings and encourage synergies in production across similar but related programs deemed critical.
"Increasing JASSM and LRASM production is essential for American and allied national security, and Lockheed Martin is ready to answer the call," Dave Berganini, vice president of hypersonic and strike systems at Lockheed’s missiles and fire control unit, said in a statement. "We are leveraging our advanced manufacturing capabilities and investing in our production facilities to quickly and affordably deliver these critical capabilities warfighters need to maintain a strategic edge and protect our nation from emerging threats."
AMRAAM procurement is only expected to continue through 2028 when the service expects to be able to produce the Joint Advanced Tactical Missile in large quantities, according to the FY-25 future years defense program.
As far as FY-26 goes, the service’s FY-26 budget proposal asks for $6.2 billion in missile procurement. The unfunded priorities list Air Force Chief of Staff Gen. David Allvin sent to congress in July highlights another $4.1 billion to buy even more munitions in an effort to replenish emptying stockpiles amid global conflicts.
“The Air Force is actively engaging with industry to utilize supplemental funding to maximize munitions production,” the service spokesperson said.