According to the Pentagon’s contract announcement, the Missile Defense Agency has awarded Raytheon a multi-year contract for SM-3 Block IB interceptors with a $4.43B base value and a ceiling of $6.34B if all options are exercised. The contract is undefinitized, and about $454M has been obligated so far.
The Pentagon’s contract announcement lists the noncompetitive contract, HQ0851-27-C-E001, as covering SM-3 Block IB All-Up-Rounds. It is valued at $4,432,040,944 at base and up to $6,342,404,516 if all options are exercised, a ceiling rather than committed spending, and $454,215,132 in fiscal 2026 procurement funds was obligated at award. Because the contract is undefinitized, its final terms and price are still to be set. RTX describes it as a five-year contract with two option years and says it supports “urgent replenishment” of missile defense inventory. Work will be mainly in Tucson, Arizona, and Huntsville, Alabama. SM-3 IB is a ship- and land-based interceptor designed for short- to intermediate-range ballistic missiles in midcourse flight.
Sources: Department of War contract announcement · RTX