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May 2, 2018 / 12:15 PM

MDA taps Raytheon for ongoing SM-3 missile production

Raytheon’s SM-3 Block IIA completed its first successful intercept flight test on Feb. 3, 2017, at the U.S. Navy’s Pacific Missile Range Facility in Kauai, Hawaii. Photo courtesy of Missile Defense Agency.

Raytheon’s SM-3 Block IIA completed its first successful intercept flight test on Feb. 3, 2017, at the U.S. Navy’s Pacific Missile Range Facility in Kauai, Hawaii. Photo courtesy of Missile Defense Agency.

May 2 (UPI) -- Raytheon has been awarded a contract from Missile Defense Agency for Standard Missile-3 Interceptors.

The deal, announced Tuesday by the Department of Defense, is valued at more than $387.1 million under the terms of a undefinitized contract action, which is a modification to a previous Pentagon award.

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The agreement enables Raytheon to regularly deliver SM-3 Interceptor missiles, with the first shipment providing 20 SM-3 Block IIA missiles, as well as up to four additional missiles for a potential foreign military sale, the Pentagon said in a contract announcement.

The contract includes a sustainment rate capability that would see Raytheon providing two all-up rounds per month.

The contract modification surges the total cumulative award to more than $1.109 billion, from more than $694.3 million.

Work on the contract will occur in Tucson, Ariz., and is expected to be complete in April 2022.

More than $161 million will be obligated to Raytheon at time of award. The funds will be allocated from fiscal 2018 procurement and defense-wide funds, according to the Defense Department.

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