# DoD Awards Raytheon $6.3B SM-3 Contract

On October 8, 2026, the Department of Defense, through the Missile Defense Agency, awarded Raytheon a multiyear contract for continued production and sustainment of Standard Missile-3 Block IB interceptors. The contract has a **$4.4 billion base value** and could reach **$6.3 billion** with two option years, following a five-year base period. Production will be concentrated in Tucson, Arizona, and Huntsville, Alabama, to replenish missile-defense inventories and expand manufacturing capacity. This is an award to Raytheon, not an open solicitation; the signals do not identify quantities, a contract number, or a procurement contact.

- The sustained production commitment may create subcontracting opportunities for qualified suppliers of solid-rocket motors, specialized equipment, manufacturing support, and other constrained components.
- Suppliers should treat this as a potential supply-chain opportunity through Raytheon rather than a direct federal bid; no subcontract solicitation or supplier contact is specified.
- The reports identify production capacity and supply-chain constraints, while also noting that funding uncertainty and congressional appropriations could affect investment and expansion plans.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Published:** October 10, 2026

### Government Entities
- U.S. Department of Defense (DoD)
- Missile Defense Agency (MDA)
- U.S. Navy (USN)

### Vendors
- Raytheon (RTX) (awardee)

### Key Quotes
> The contract "supports urgent replenishment of missile defense inventory that has been successfully used in combat," Raytheon said.
> — Raytheon

### Sources
- [Raytheon to build more missile interceptors that can destroy threats in space

Raytheon’s latest missile contract comes as the U.S. seeks to replenish inventories and expand production of critical air and missile defense weapons.
https://t.co/wPoFujV3kk](https://x.com/shehzadyounis/status/2108617768417607913) - twitter-defense
- [Pentagon awards $6.3 billion contract to Raytheon for missile interceptors ](https://thehill.com/newsletters/defense-national-security/6137737-pentagon-awards-6-3-billion-contract-to-raytheon-for-missile-interceptors) - The Hill
- [Pentagon, Raytheon ink up to $6.3 billion multi-year contract for SM-3 IB missiles - Breaking Defense](https://breakingdefense.com/2026/10/pentagon-raytheon-ink-up-to-6-3-billion-multi-year-contract-for-sm-3-ib-missiles) - Breaking Defense