US Awards Raytheon $20.7 Billion Missile Production Contract

The US Department of War awarded Raytheon a contract valued at up to $20.7 billion to produce Advanced Medium-Range Air-to-Air Missiles (AMRAAMs) for American and allied forces, formalizing a long-term strategy to expand weapons manufacturing.

Announced on September 28, the agreement spans a five-year period with options for two additional years. This maximum stated value represents a joint investment by the US Air Force, Navy, and international partners purchasing through the Foreign Military Sales program.

Boosting Domestic Production Capacity

The contract aims to significantly increase domestic AMRAAM missile production. Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment, stated the award strengthens the ability to equip US and allied forces with a proven air-to-air capability, ensuring a decisive advantage.

Raytheon's parent company, RTX, indicated that AMRAAM production in 2025 is projected to nearly double 2024 levels. This follows a previous agreement supporting an annual production goal of at least 1,900 AMRAAMs, though neither the Department nor Raytheon specified the exact number of missiles under the new contract or a delivery timeline.

Industry Expansion and Global Reach

Raytheon President Phil Jasper confirmed the company is expanding its workforce, supply chain, and facilities to meet increased demand from the US military and international partners. Hundreds of small and mid-sized US suppliers are involved in this expansion effort.

The US Department

The AMRAAM system is currently deployed by 44 countries and operates across 14 different platforms. Its versatility allows for use in air-to-air combat and as an interceptor within the ground-based NASAMS air defense system, highlighting its broad relevance to global defense capabilities.

Congressional Support for Sustained Output

The Department of War acknowledged Congress for providing multiyear procurement authority for AMRAAM. It also indicated that further authority and funding would be crucial to sustain production levels and provide greater certainty for manufacturers in the coming years, though specific funding requests were not detailed.

Future Production and Supply Chain Resilience

The contract underscores a strategic push to enhance the US defense industrial base, ensuring a consistent supply of critical munitions for both domestic use and international allies. Raytheon is exploring production partnerships overseas, though specific countries or companies were not named.

This long-term commitment aims to mitigate supply chain vulnerabilities and meet rising global demand for advanced air defense systems, potentially influencing future defense procurement strategies among allied nations.