Raytheon Secures Multi-Billion Dollar AMRAAM Missile Contract from Pentagon

The United States Department of Defense has awarded a substantial contract to Raytheon, a major American defense contractor, for the procurement of Advanced Medium-Range Air-to-Air Missiles (AMRAAM), with the total value reaching an impressive $3.5 billion. This agreement marks a significant investment in the continued development and deployment of one of the most widely used and trusted air-to-air missile systems in the world. The contract is structured as a fixed-price incentive deal, meaning that while the price is largely predetermined, Raytheon is incentivized to manage costs efficiently and deliver high-quality products on schedule. Notably, the contract does not specify a definitive completion date, indicating a flexible timeline that allows for adjustments based on production needs, technological developments, and strategic priorities.

AIM-120 AMRAAM. Photo: af.mil

This procurement covers Lot 39 and Lot 40 of AMRAAM production, which are part of an ongoing series of missile manufacturing batches that have been incrementally funded and executed over the years. Each lot typically represents a phase in the production cycle, incorporating improvements in design, performance, and integration based on feedback from operational use and advancements in technology. The inclusion of two consecutive lots in this contract suggests a sustained commitment to maintaining and enhancing the U.S. military’s air-to-air combat capabilities, particularly in light of evolving global threats and the need for interoperability with allied forces.

The scope of the contract extends beyond the missiles themselves. It encompasses the production of telemetry systems, which are critical for tracking and analyzing missile performance during testing and operational deployment. Telemetry systems provide real-time data on missile trajectory, speed, altitude, and other key parameters, enabling engineers and military personnel to assess effectiveness and make necessary adjustments. By including these systems in the contract, the Department of Defense ensures that each missile can be thoroughly evaluated and optimized for future engagements.

Additionally, the contract includes the procurement of initial spare parts and field components. These elements are essential for maintaining operational readiness and ensuring that deployed missile systems can be quickly repaired or upgraded as needed. Spare parts support the logistical backbone of military operations, allowing for rapid response to equipment failures and minimizing downtime in critical combat scenarios. Field components, meanwhile, facilitate the integration of AMRAAMs into various platforms, including fighter jets like the F-15, F-16, F/A-18, and the fifth-generation F-35 Lightning II. This versatility is one of the key strengths of the AMRAAM system, making it a valuable asset across multiple branches of the armed forces.

The contract also includes a range of production support engineering activities. These activities involve the technical and logistical processes required to ensure that missile manufacturing proceeds smoothly and efficiently. Engineering support may include quality assurance, design refinement, supply chain management, and coordination with subcontractors. By investing in these support functions, the Department of Defense aims to maintain high standards of reliability and performance across all units produced under the contract.

Raytheon’s role in this contract underscores its position as a leading provider of advanced missile systems. The company has a long history of collaboration with the U.S. military and has consistently delivered cutting-edge technologies that enhance national defense capabilities. The AMRAAM, in particular, has been a cornerstone of air superiority strategies for decades, with its active radar guidance, beyond-visual-range targeting, and high kill probability making it a preferred choice for modern air combat.

The $3.5 billion contract awarded to Raytheon for AMRAAM Lots 39 and 40 represents a comprehensive and strategic investment in the United States’ air-to-air missile capabilities. By including missile production, telemetry systems, spare parts, field components, and engineering support, the Department of Defense is ensuring that its forces remain equipped with reliable, effective, and adaptable weaponry. This move not only strengthens national security but also reinforces the technological edge of the U.S. military in an increasingly contested global environment.