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Raytheon’s Tucson missile unit racks up another multibillion-dollar contract

The AIM-120D3 is the latest variant of AMRAAM missile developed under the Form, Fit, Function Refresh. Raytheon

 

 

 

 

 

 

Phoenix Business Journal

Story Highlights

  • RTX Corp.’s Raytheon awarded $3.5B USAF contract for AMRAAM missiles
  • Contract benefits several foreign military sales partners through 2031
  • Raytheon leads Arizona’s defense sector by contract dollar value

The 10-figure deals continue to roll in for one of Arizona’s biggest defense contractors — and they keep getting bigger.

RTX Corp.’s missile manufacturing operation, Tucson-based Raytheon, has been awarded a $3.5 billion contract from the U.S. Air Force for the production of missiles as part of the Advanced Medium Range Air-to-Air Missile, or AMRAAM, program.

Under the deal, Raytheon’s Tucson operation will produce AMRAAM missiles, telemetry system equipment, and initial and field spares, as well as conduct production engineering support activities.

The deal benefits foreign military sales partners including Denmark, Belgium, Japan, Netherlands, Canada, Finland, Germany, Hungary, Spain, Poland, Sweden, Taiwan, Lithuania, the United Kingdom, Australia, Switzerland, Ukraine, Israel and Kuwait, according to the U.S. military.

“As global conflicts intensify and air threats become more sophisticated, AMRAAM continues to give allied forces a decisive edge in combat,” said Sam Deneke, president of Air & Space Defense Systems at Raytheon, in a statement. “This award underscores the critical role that the fifth-generation AMRAAM plays in maintaining air superiority and will ensure service members have the advanced technology needed to stay ahead of adversary threats.”

The contract runs through the third quarter of fiscal year 2031.

Before this latest deal, Raytheon had already racked up three contracts this year worth $1 billion or more — including one deal valued at $2.1 billion. They have helped make the company the money leader in Arizona’s booming aerospace and defense sector — which has been on a growth streak with a number of cutting-edge projects.

This latest deal also surpasses a $1.19 billion AMRAAM contract from September 2024 that had been the largest contract in the program.

The AMRAAM program is part of the U.S. military’s Form, Fit, Function Refresh program — also known as F3R — under which engineers upgrade circuit cards and other hardware in missile guidance systems and update legacy software to upgrade midrange air-to-air AIM-120D3 and AIM-120C8 munitions and keep them viable for years to come as threats evolve. The first contract of its kind was awarded to Raytheon in Tucson in 2022.

Other recent Raytheon contracts

The contract is the latest of several awarded to Raytheon in Tucson over the past few weeks. Here is a roundup of the others:

  • On July 29, Raytheon was awarded a $67,550,000 U.S. Navy contract modification for Evolved Seasparrow Missile Blk 2 guided missile assemblies. Work will be performed in Tucson and at other sites to be completed by September 2030.
  • On July 24, Raytheon was awarded a $32,519,000 contract for medium range intercept capability (MRIC) for the U.S. Marine Corps. The contract provides for the purchase of 44 sets of long lead items (LLIs) including quantities for spares and upgrades to prototype systems that have already been procured. The work will take place in Tucson, with a final delivery date of Nov. 22, 2027.
  • On July 23, Raytheon was awarded a $51,901,614 contract modification for the production and delivery of full rate production Stinger Air-to-Air Launchers, ancillary support equipment training, associated engineering services for integration activities and obsolescence management work for the U.S. Marines. The cumulative value of the contract is $96,250,000. Most of the work will be done in Tucson, expected completion by September 2026.
  • On June 28, Raytheon was awarded a $279,201,818 contract to provide functional management support for the Land-Based Phalanx Weapon System for the U.S. Army. Work locations were to be determined with each order, estimated completion by July 2030.
  • On June 26, Raytheon, was awarded a $49,790,954 contract modification to exercise an option and provide funding for spares and manufacturing, assembly, test and delivery of standard Missile-6 (SM-6) Tactical All-Up Rounds in support of full-rate production requirements for the U.S. Navy. Work will be performed in Tucson and other sites, expected completion by April 2029.

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