The precision extended range munition will be used with the Marines' M327 rifled towed mortar, a key weapon for Marines expeditionary forces.
"Leveraging our extensive experience with precision munitions, Raytheon will provide the Marine Corps with precision, highly lethal indirect fire support for its combat operations while minimizing collateral damage," said Tom Bussing, vice president of Advanced Missile Systems for Raytheon Missile Systems.
"Our PERM solution is also expected to reduce logistical burdens since fewer rounds will be needed to accomplish the mission."
Raytheon said work under the 18-month contract will be performed in collaboration with Israeli Military Industries.
The new mortar round will feature extended range and all-weather capability.