WASHINGTON, July 25 Raytheon Co has won
a sole-source contract worth $925 million for continued work on
the advanced Standard Missile-3 Block IIA missile, a
co-development effort between the United States and Japan, the
Pentagon and the company announced on Wednesday.
The Pentagon's Missile Defense Agency announced the
contract, which is based on cost-plus-incentive-fee terms. The
contract is to run through Feb. 28, 2017.
The Pentagon said the new contract award increased the value
of Raytheon's existing contract for the missile to $1.51
billion. It covers development work through critical design
review and flight test support.
Raytheon welcomed the news, saying it was working with Japan
to develop what it called a next-generation capability for the
SM-3 missile, which is already used by the U.S. and Japanese
navies to destroy short- to intermediate-range ballistic
missiles. It has been used for 21 successful intercepts.
"As the threat continues to evolve, so does our ability to
counter that threat," said Taylor Lawrence, president of
Raytheon Missile Systems.
The new SM-3 Block IIA missile, the third evolution of the
SM-3 family of missiles, will have larger second- and
third-stage rocket motors and a larger, more capable kinetic
warhead, Raytheon said. It said the missile should be ready for
use in 2018.