Navy awards Raytheon with $27M contract for SM-2 missiles

The contract includes options for Australia, Canada, Germany, Japan, Netherlands, South Korea, Spain and Taiwan, in addition to the United States.
By James LaPorta  |  Jan. 8, 2018 at 10:14 AM
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Jan. 8 (UPI) -- Naval Sea Systems Command has awarded Raytheon a contract to procure the Navy's Standard Missile-2, or SM-2, the primary surface-to-air defense weapon used by naval cruisers and destroyers.

The deal, announced Friday by the Department of Defense, is worth more than $27.2 million under a cost-plus-fixed-fee agreement to provide Standard Missile-2 between fiscal year 2018 and 2022.

Additionally, the contract provides intermediate level maintenance, all-up round re-certifications and special maintenance tasks, which will also benefit allied foreign navies with SM-2 repairs and maintenance, the Pentagon said.

The SM-2 is a surface-to-air defense weapon which integrates with the AEGIS Weapon System installed on Ticonderoga-class cruisers and Arleigh Burke-class destroyers. The SM-2 is fired from the Mark-41 vertical launcher system in fleet area air defense and ship self-defense missions.

If all caveat options are exercised, the contract may surge to over $227.7 million, as it potentially provides services to Australia, Canada, Germany, Japan, Netherlands, South Korea, Spain and Taiwan, in addition to the United States.

Work on the contract will occur in Arizona, Arkansas and Alabama, and is expected to be completed by December 2018.

U.S. Navy operations and maintenance funding from fiscal year 2018 of more than $362,000 has been obligated to Raytheon at the time of award and will not expire at the end of the current fiscal year.

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