Latest batch of missile system contracts bring nearly $2B in new Arizona work for Raytheon
Late June contract deals from the U.S. military have brought RTX’s Raytheon operation in Tucson more than $1.86 billion in new work on air and ground missile systems.
In the biggest deal, Raytheon (NYSE: RTX) won what is its largest contract to date as part of the Advanced Medium Range Air-to-Air Missile (AMRAAM) program, with $1.15 billion awarded for AIM-120 D-3 and C-8 AMRAAM missiles for the U.S. Air Force and Navy — as well as for 18 other countries, including Ukraine, which is currently fighting invading Russian forces.
The firm-fixed-price contract comes through the Form, Fit, Function Refresh program, also known as F3R, which updates missile hardware and allows for software upgrades. Raytheon has said these adjustments provide significant capability enhancements to counter advanced threats.
“We recognize AMRAAM is the most advanced, combat-proven missile, and we owe it to the warfighters to ensure they have the technology they need when they need it,” said Paul Ferraro, president of Air Power for Raytheon, in a statement. “Be it air-to-air or surface-to-air, AMRAAM continues its proud legacy with greater power and precision than ever before with this contract.”
The latest deal follows a previous AMRAAM contract for Raytheon for $972 million announced last September for hardware and software for AIM-120D3 and AIM-120C8 missiles. That was the first contract of its kind under the F3R, program.
Javelin missiles
Raytheon will also be boosting work on the Javelin missile system under a couple of contract modifications with the U.S. Army totaling nearly $71 million.
The Javelin deals are for production work on launch units, launch electrics and F Model rounds for the Javelin system, which are built under the Javelin Joint Venture partnership between Raytheon and Lockheed Martin (NYSE: LMT).
The first contract modification awards $61.25 million for low-rate initial production of lightweight command launch units, with work to be done in Tucson with an estimated completion date in June 2025. The second modification, for $9.43 million is for Javelin F Model rounds and vehicle launch electrics. That work will also be done in Tucson with an estimated completion date in February 2028.
The Javelin is used by the U.S. Army and Marine Corps — as well as by foreign military clients — and is described by RTX as a guided munition that can be carried by a single soldier and used against vehicles, bunkers and caves.
The launch units allow it to perform surveillance and see targets and be used day or night in any kind of weather, as well as be deployed from various platforms, including unmanned remote launchers.
F Model Javelins combine the functions previously performed by different kinds of rounds into a single warhead.
The U.S. military expects to keep the Javelin system in its operational inventory through 2050, according to RTX and Lockheed Martin. The joint venture between the two companies was also awarded more than $32 million in Javelin contract modifications earlier this year.