Raytheon wins multibillion-dollar deal to keep building SM-3 Block IB interceptors
The Missile Defense Agency has awarded Raytheon a multiyear contract worth as much as $6.3 billion to produce SM-3 Block IB interceptors through 2034. The award includes a $4.4 billion base portion and reverses an earlier plan to stop buying the weapon. It comes as the Trump administration seeks to expand missile production and review interceptor inventories for the Golden Dome homeland defense effort.
The Missile Defense Agency disclosed the award on Oct. 8. Raytheon, part of RTX, will continue producing SM-3 Block IB interceptors under a sole-source arrangement lasting through 2034. The contract has a $4.4 billion base value and could reach $6.3 billion overall.
The award reverses an earlier plan to stop purchasing the weapon about two years ago. It also aligns with the Trump administration's push to boost missile output and its review of interceptor stockpiles tied to the Golden Dome homeland defense program.
The contract may sustain Raytheon jobs and supplier networks while committing public funds for years. It could affect military readiness and homeland defense planning, and may influence how adversaries assess U.S. missile defenses. Taxpayers and communities tied to missile production could see economic effects, though the ultimate security benefits depend on testing, deployment, and strategic conditions.