US Department of Defense Awards Raytheon Largest AIM-120 AMRAAM Contract to Date

What's Happening?

The US Department of Defense (DoD) has awarded Raytheon a USD3.5 billion contract for the production of AIM-120 Advanced Medium-Range Air-to-Air Missiles (AMRAAM). This contract is the largest in the history of the AMRAAM program, surpassing the previous USD1.19 billion contract awarded in September 2024. The contract includes purchases for the US Air Force, Navy, Marine Corps, and Foreign Military Sales (FMS) partners, with FMS funding amounting to USD621 million. The contract covers Production Lots 39 and 40, including AIM-120D-3 missiles for domestic services and AIM-120C-8 versions for export customers. Work under the contract is expected to last through 2031.

Why It's Important?

This contract signifies a major investment in air-to-air missile capabilities for the US military and its allies. The AIM-120 AMRAAM is a critical component of air defense systems, providing advanced radar-guided missile capabilities. The contract's size reflects the growing demand for these missiles, particularly in light of global security challenges. The inclusion of FMS partners such as NATO allies, Australia, Israel, Japan, Kuwait, Taiwan, Switzerland, and Ukraine highlights the strategic importance of these missiles in international defense collaborations.

What's Next?

Raytheon will begin production under the contract, with work expected to continue through 2031. The DoD and Raytheon will likely focus on ensuring timely delivery and integration of the missiles into existing defense systems. The contract may also lead to further collaborations and technological advancements in missile systems.