May 2 (UPI) — Raytheon has been awarded a contract from Missile Defense Agency for Standard Missile-3 Interceptors.
The deal, announced Tuesday by the Department of Defense, is valued at more than $387.1 million under the terms of a undefinitized contract action, which is a modification to a previous Pentagon award.
The agreement enables Raytheon to regularly deliver SM-3 Interceptor missiles, with the first shipment providing 20 SM-3 Block IIA missiles, as well as up to four additional missiles for a potential foreign military sale, the Pentagon said in a contract announcement.
The contract includes a sustainment rate capability that would see Raytheon providing two all-up rounds per month.
The contract modification surges the total cumulative award to more than $1.109 billion, from more than $694.3 million.
Work on the contract will occur in Tucson, Ariz., and is expected to be complete in April 2022.
More than $161 million will be obligated to Raytheon at time of award. The funds will be allocated from fiscal 2018 procurement and defense-wide funds, according to the Defense Department.