Raytheon lands $2.1B boost for Standard Missile-3 support under MDA contract

The Missile Defense Agency (MDA) has awarded Raytheon a $2.1 billion modification to its contract for sustainment and support of the Standard Missile-3 (SM-3) program, significantly increasing the contract’s value to over $3.3 billion.

The modification, announced on 12 May 2025 by DOD, adds $2.134 billion to Raytheon’s contract originally awarded in 2021. The contract (HQ0851-21-D-00001) supports sustaining engineering and product support services for the SM-3 Block missile variants used by the United States and allied nations under foreign military sales.

Work will take place in Tucson, Arizona—home to Raytheon’s missile systems operations—and Huntsville, Alabama, where MDA headquarters is located. The performance period runs through October 2029.

The SM-3 family is a key component of the US ballistic missile defense system, with capabilities to intercept short- to intermediate-range ballistic missiles in the midcourse phase of flight. Raytheon's Block IIA variant, codeveloped with Japan, has been central to Aegis Ballistic Missile Defense deployments at sea and abroad.

Raytheon, a business of RTX (formerly Raytheon Technologies), remains one of the Pentagon’s largest missile defense contractors, frequently securing multibillion-dollar awards to support systems ranging from SM-3 to Patriot and THAAD.