Raytheon Wins $524 Million To Deliver 47 SM-3 Block IB Missiles

Raytheon is being awarded a $524 million contract to procure material, fabricate, test and deliver 47 SM-3 Block IB missiles for fiscal 2016.

This contract action is an option exercise that was previously announced on Dec. 18, 2015. Under this option exercise, as previously identified in the December 2015 announcement, the contractor will continue efforts to procure the material, fabricate, test and deliver 47 SM-3 Block IB missiles, US department of defense said in a statement Wednesday.

This option exercise, valued at $524 million is the first of three one-year options (fiscal 2016 through fiscal 2018) with a quantity of up to 52 per option year. It is noted, however, that the money was included in the ceiling amount specified in the previous congressional notification issued on Dec. 18, 2015.

The work is expected to complete by Sept. 30, 2021.