Raytheon Awarded $925 Million SM-3 Missile Contract with Work to be Performed at RMS Facility in Tucson
Contract now totals more than $1.5 billion for latest in SM-3 line
13 HOURS AGO • DAVID WICHNER ARIZONA DAILY STAR
July 26, 2012
Despite looming defense budget cuts, Tucson-based Raytheon Missile Systems keeps winning funding for its missile-defense programs.
The U.S. Missile Defense Agency has awarded the company a five-year, $925 million contract to continue development of a new ship-based missile interceptor with Japan.
The contract increases the total value of work on the the Standard Missile-3 Block IIA missile to more than $1.5 billion, according to the Pentagon.
On track for deployment in 2018, the missile is the third in the SM-3 series of missiles, following the SM-3 Block IA and SM-3 Block IB.
SM-3 Block IA missiles are currently employed on Japan’s Kongo-class ships.
The new SM-3 Block IIA will have a larger, 21-inch second- and third-stage rocket motor and a larger, more capable kinetic, hit-to-kill warhead, Raytheon said.
“The SM-3 IIA’s larger rocket motors will allow for a greater defended area, which is an important factor when it comes to protecting both the U.S. and our NATO allies,” Wes Kremer, vice president of the air and missile defense systems for Raytheon Missile Systems, said in prepared remarks.
To date, Raytheon – Southern Arizona’s biggest private employer – has delivered more than 130 SM-3s to the U.S. and Japanese navies
The contract announced Tuesday covers complete missile development and integration through the critical design review and flight test phases of the program, according to a Defense Department contract notice.
The work is to be performed in Tucson through February 2017. Fiscal-year 2012 research, development, test and evaluation funds will be used to incrementally fund the contract effort, the notice said.
The Pentagon faces potentially deep cuts if Congress fails to curb deficit spending enough to avoid automatic cuts in January, a process known as sequestration.
Pentagon officials confirmed last week that sequestration cuts would not affect current contracts funded with fiscal 2012 dollars and obligated by Sept. 30, the end of the federal fiscal year.
Contact Assistant Business Editor David Wichner at firstname.lastname@example.org or 573-4181.
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