June 19 (UPI) -- Raytheon Missile Systems has received a $618 million contract for procurement of the surface-to-air Standard Missile 2, according to the Department of Defense.
The contract supplies missiles and spares for the U.S. and allied navies, including Japan, Australia, the Netherlands and Korea. If options are exercised, the total value of the contract could reach $650 million.
Work will primarily be conducted in Tucson, Ariz., with other sites scattered across the U.S. and Hengelo OV, Netherlands. The contract is expected be completed by March 2022.
Fiscal 2017 Navy operation and maintenance, foreign military sales, and memorandum of understanding funds in the amount of $617 million will be obligated upon the award, with $20 million expiring at the end of the fiscal year.
The Standard Missile 2 is the primary long-range surface-to-air missile of the U.S. Navy. It is deployed on the Aegis Weapon System equipped Ticonderoga-class cruisers and the Arleigh Burke-class destroyers using the Mk-41 Vertical Launch System. The SM-2 is also in service with 15 allied navies on a variety of ship classes.
The Aegis Weapons System can automatically track and engage dozens of targets at once using the SM-2 and other Standard variants. The current SM-2 Block IV has a range of up to 230 miles, carries a high-explosive fragmentation proximity warhead, and is guided by inertial navigation, AWS mid-course corrections from the launching ship, and semi-active radar.
An upgraded version of the SM-2, the SM-6 Extended Range, includes an active-seeker radar, longer range, and improved ability to engage surface targets. It can also engage incoming ballistic missiles in their terminal descent phase. The variant was certified for full operational capability earlier this year.