SM-3 IB AUR Multi-year Contract
Award Notice Posted
- Solicitation number
- HQ085127CE001
- Agency
-
Missile Defense Agency
Department of Defense
- Awarded
- Set-aside
- No set-aside
Opportunity facts
- Contract number
- HQ085127CE001
- NAICS code
- 336414 Guided Missile and Space Vehicle Manufacturing
- PSC
- 1410 Guided Missiles
- Place of performance
- Tucson, Arizona 85756, United States
Notice details come from SAM.gov. Updated .
About this opportunity
The Missile Defense Agency, under the Department of War, awarded Raytheon Company, an RTX business, a multi-year Undefinitized Contract Action (contract HQ085127CE001) valued at up to $6.3 billion for production of Standard Missile-3 Block IB interceptors, with the award dated October 7, 2026.
The agreement spans five years with two additional option years, covering FY2026 through FY2032, and authorizes Raytheon to begin work immediately in Tucson, Arizona and Huntsville, Alabama. Scope includes All-Up Rounds, missile production, obsolescence management, spares provisioning, and the labor and tooling needed to increase production capacity. The award was made on a sole-source basis under 10 U.S.C. 3204(a)(1), with Raytheon identified as the sole qualified source based on its completion of SM-3 design, development, and testing and its ownership of the SM-3 Technical Data Package. The contract uses a hybrid of cost, fixed-price, and cost-reimbursement types. No set-aside was used. FAR 52.244-5 (Competition in Subcontracting) and DFARS 252.219-7004 (Small Business Subcontracting Plan) are included in the contract.
Notice text
Department of War Awards $6.3 Billion Multi-Year Contract to RTX’s
Raytheon for SM-3 BLOCK IB Interceptors
The Department of War and the Missile Defense Agency (MDA) awarded Raytheon, an RTX business, a multi-year procurement contract valued at up to $6.3 billion to produce Standard Missile–3 Block IB (SM-3 Blk IB) interceptors. The agreement spans five years with two additional option years, providing multi-year procurement stability for the Joint Force’s premier ballistic missile defense capabilities.
“Our warfighters must never face a fair fight, and the SM-3 Blk IB has proven its operational superiority to dominate any adversary across the globe,” said Under Secretary of War for Acquisition and Sustainment Michael P. Duffey. “This contract provides production certainty to our defense industrial base, breaks sub-tier manufacturing bottlenecks, and ensures that our fleets and combatant commands have the interceptors required to dominate the battle space—air, sea or land.”
By anchoring the investment over a seven-year period, the Department eliminates the programmatic and supply-chain friction that constrains private-sector capacity, forcing capital allocation directly into assembly lines, solid-rocket motor suppliers, and critical domestic sub-tier vendors.
The SM-3 Blk IB was first used in 2024 to intercept Iranian ballistic missiles. This Undefinitized Contract Action authorizes Raytheon to begin work immediately in Tucson, Arizona and Huntsville, Alabama.
Awarded contract HQ085127CE001 to Raytheon Company for 6342404516.00 on 2026-10-07.
Files
| File | Type | Posted |
|---|---|---|
| D_Signed_SM-3 Blk IB_MYP FY26-32 JA_20260205_final (LL6R)_Redacted.pdf |
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