Raytheon Company

Raytheon Company's Missiles and Defense (RMD) Division, headquartered in Tucson, Arizona, designs, develops, produces, and sustains guided air-to-air missiles, cruise missiles, air defense systems, precision munitions, radar and sensing technologies, and defense electronics as a large business prime contractor operating on full-and-open competition without reliance on small business set-asides. The division is a subsidiary of RTX Corporation and competes predominantly as a prime (99% of recent awards), generating roughly $293.7 billion in combined potential value across 6,822 federal awards spanning guided missile manufacturing, systems engineering, component production, and sustainment services.

Raytheon RMD's capability portfolio centers on five dominant programs anchoring customer concentration across the Department of Defense. The Advanced Medium Range Air-to-Air Missile (AMRAAM/AIM-120) family represents the division's largest program footprint, with over $2 billion in recent definitive contracts and multiple active delivery orders supporting production through 2031 and ongoing Foreign Military Sales across allied nations. The Standard Missile family (SM-2, SM-3, ESSM variants) serves naval air defense with combined awards exceeding $34.87 billion, positioned at Naval Sea Systems Command as a design agent and production authority through 2030. The Small Diameter Bomb Increment II (SDB II) precision-guided air-launched glide munition program carries $357 million and $53.8 million in recent delivery orders under Air Force Life Cycle Management Center Eglin, supporting development and production of a Major Defense Acquisition Program serving Air Force, Navy, and Marine Corps tactical platforms. Stinger man-portable air defense missile production reached $578.6 million in a single 2025 delivery order (through September 2031) under Army PEO Missiles and Space. The Tactical Tomahawk cruise missile program sustains sustainment and engineering support contracts under Naval Air Systems Command. Recent representative awards include a $2.626 billion Next Generation Missile Defense Radar delivery order under the $151 billion SHIELD multiple-award IDIQ (MDA, December 2025), a $4.85 billion indefinite delivery contract for Coyote Interceptors unmanned aerial systems (Army, September 2025), and a $115.42 million Other Transaction Agreement for exo-atmospheric space-based midcourse-phase interceptor development (Air Force, February 2026).

Customer concentration is heavily weighted toward naval and Air Force missile programs. The top five funding agencies account for 66% of recent awards by count: Naval Air Systems Command leads with 1,789 awards ($19.26 billion combined potential value), Naval Supply Systems Command follows with 1,344 awards ($3.57 billion), the Air Force contributes 269 awards ($54.82 billion—the highest dollar concentration despite lower award volume), Naval Sea Systems Command holds 169 awards ($34.87 billion), and the Missile Defense Agency manages 178 awards ($28.31 billion). The Air Force-Navy split reveals a dollars-first customer profile: Air Force's smaller award count carries dominant dollars, driven by large AMRAAM production and advanced radar contracts, while Navy's higher order count reflects frequent small component and sustainment delivery orders across missile repair, refurbishment, and spare parts procurement.

Raytheon RMD's vehicle footprint emphasizes single-award and multiple-award IDIQs. The five largest parent vehicles include the Naval Air Systems Command Indefinite Delivery Contract N0001920D0008 ($720.5 million across 273 task orders), the Air Force Materiel Command AMRAAM vehicle N0001907D0001 ($192.2 million across 295 task orders), Naval Air Systems Command IDC N0001919D0023 ($195.8 million across 170 task orders), Basic Ordering Agreements SPRMM113G1105 and SPRMM118GDL01 ($61.7 million and $37.6 million respectively), and the recently awarded Coyote Interceptors IDC ($4.85 billion, September 2026–September 2033). Additional significant vehicles include the SHIELD multiple-award IDIQ ($151 billion, MDA, December 2025–December 2035) and the MALD/MALD-J Contractor Logistics Support vehicle ($85.2 million, Air Force Sustainment Center, September 2025–September 2030). These vehicles provide standing authority for task order issuance without separate competitive solicitation, enabling Raytheon to respond rapidly to Navy, Air Force, and Army sustainment, production, and modernization requirements across its embedded position in mature programs.

Award activity has remained robust but shows recent moderation. Five-year trajectory runs 287 awards in 2022 down to 91 in 2026 (partial year data through August), reflecting normal lumpy federal contracting cycles rather than strategic contraction—large production contracts awarded in 2022–2024 have transitioned to ongoing task order execution under existing vehicles. Within the next twenty-four months, 250 awards carrying combined potential value of $19.58 billion reach ultimate completion, creating significant recompete exposure and opportunity for competitors and renewed pursuit activity by Raytheon across AMRAAM production phases, Standard Missile variants, and sustainment programs reaching renewal windows.

Raytheon RMD operates predominantly as a prime contractor in-house design, integration, and final assembly at Tucson, leveraging specialized subcontractors for components and manufacturing. Named subs appearing in recent high-dollar awards include General Dynamics OTS (systems integration on SDB II), Simmonds Precision Products and Mercury Systems (electronic components on SDB II), Aerojet Rocketdyne (propulsion systems across multiple programs), Northrop Grumman Systems (specialized subsystems), Hi-REL Connectors and Metal Works Precision Machine & Tool Inc. (AMRAAM connector and cable manufacturing), and specialized RF/microwave, test equipment, and pyrotechnic suppliers including Moog Inc., Kratos S1 Inc., Teledyne Storm Microwave, and Ensure sign-Bickford Aerospace & Defense. Sub engagement across SCI-reportable service contracts ran at 0% average sub-hours share, indicating Raytheon delivers most labor in-house while leveraging subs for material and component procurement rather than labor subcontracting. SCI activity (service contracts above $150,000 threshold) shows $81.7 million invoiced across FY2022–2025, peaking at $70.5 million in FY2022, declining sharply through FY2024 ($3.4 million), and approaching zero in FY2025—a pattern consistent with goods-and-production-heavy acquisition footprint rather than services-dominant work. Government-paid hourly rates on federal service contracts ranged from $145/hr (10th percentile) to $509/hr (90th percentile), with a median of $200/hr, reflecting mix of engineering, field support, and logistics labor.

The division also holds positions as subcontractor to Lockheed Martin, Boeing, Dynetics, L3Harris, Riverside Research Institute, and Leidos across next-generation air defense (GMD sustainment, GBI/AUR program management), dual-capable aircraft SDB II integration, wideband satellite communications operations support, and nuclear/electromagnetic/laser survivability assessment R&D. These subs are secondary to Raytheon's overwhelming prime posture and typically flow from major primes managing integrator roles on larger programs where Raytheon supplies specialized missile component expertise.

Raytheon RMD holds no civilian agency exposure in the source data; its customer base is exclusively Department of Defense. The division competes on full technical merit without small business set-asides or other preferential mechanisms, positioning it as a competition target for smaller primes and subs bidding against established defense incumbents on unfenced vehicles. Its dominance across mature missile platforms and recent awards on next-generation capability programs (SHIELD, Coyote Interceptors, space-based interceptors) reflect sustained federal investment in advanced defense systems and sustained reliance on Raytheon's embedded technical expertise in guided weapon systems.