U.S. awards Raytheon SM-3 Block IIA production contract

The U.S. Missile Defense Agency has placed a $543 million order for 17 of Raytheon's Standard Missile-3 Block IIA interceptors.

The order follows the second flight test conducted by the Missile Defense Agency and the U.S. Navy.

Testers evaluated the SM-3 Block IIA's warhead and divert attitude control system functionality, steering control function, booster separation and rocket motor separation. The missile was launched from a Mark 41 launcher, and no target intercepts were used.

"The SM-3 Block IIA program continues to reflect the MDA's commitment to maturing this capability for the defense of our nation, deployed forces, and our allies abroad," said Dr. Taylor W. Lawrence, Raytheon Missile Systems president in a statement. "The success of this test keeps the program on track for deployment at sea and ashore in the 2018 timeframe."

Raytheon's SM-3 is currently the only ballistic missile that can be deployed from both land and sea platforms. The missile is a defensive weapon used by the U.S. Navy to engage incoming ballistic missile threats. Raytheon expects the first land-based SM-3 site to be completed in Romania by the end of 2015.

The SM-3 Block IIA, the SM-3 variant most recently tested, is being developed in cooperation with Japan with an expected operational status in 2018. It features larger rocket motors allowing it to defend larger areas from ballistic threats. The next live-fire test for the missile variant is planned for 2016, when the missile will be fired from a naval warship.

Raytheon has delivered more than 240 SM-3s to the U.S. and Japanese navies.