The US Missile Defense Agency has awarded Raytheon a $745.4 million contract to manufacture and assemble Standard Missile-3 (SM-3) Block IIA interceptors for the United States and Japan.

The noncompetitive, undefinitized contract will cover production activities at Raytheon facilities in Tucson, Arizona, and Huntsville, Alabama. Work under the agreement is scheduled to be completed by February 28, 2031.

Ballistic Missile Defense Capability

The SM-3 is a hit-to-kill interceptor designed to destroy ballistic missile threats outside the atmosphere during the midcourse phase of their flight. The missile can be deployed from land-based Aegis Ashore installations as well as Mk 41 vertical launching system cells aboard Aegis-equipped naval vessels.

These platforms include the US Navy’s Arleigh Burke-class guided-missile destroyers and Japan’s two Aegis System Equipped Vessels (ASEVs), which are scheduled to enter service in 2027 and 2028.

The SM-3 Block IIA represents the latest-generation variant and was jointly developed by the United States and Japan with industrial partners including Raytheon and Mitsubishi Heavy Industries. It incorporates larger rocket motors and an enlarged kinetic warhead, providing greater defended-area coverage and improved capability against increasingly sophisticated ballistic missile threats.

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