A day after a successful Standard Missile-3 Block IIA flight test, the Missile Defense Agency awarded Raytheon [RTN] $543 million contract for up to 17 missiles for operational testing and initial deployment.

MDA and the Navy on Dec. 8 conducted the second successful flight of the SM-3 Block IIA, paving the way for the first intercept test in 2016.

During the scenario, the missile was fired from MK 41 vertical launching system located on the ground at Point Magu Sea Range at Saint Nicholas Island, Calif, according to a Raytheon statement. The first flight test took place in June, stated a Naval Air Systems Command news release.

The missile will eventually be used by Aegis-equipped ships and the phased adaptive approach missile defense system in Europe to intercept short to intermediate-range ballistic missiles.

The Dec. 8 flight test evaluated kinetic warhead and divert and attitude control system functionality, nosecone performance, steering control section function, booster separation, and second and third stage rocket motor separation, Raytheon stated.

MDA and the Navy plan to ramp up live fire testing of the SM-3 Block IIA next year, when the missile will launch from a Navy battleship and intercept a ballistic missile target.

“SM-3 Block IIA plays a pivotal role in Phase 3 of the European Phased Adaptive Approach through its proven technology and adaptability to an evolving security environment,” said Mitch Stevison, vice president Raytheon Air & Missile Defense. “SM-3 Block IIA remains on schedule for both land and sea deployment in 2018, enabling a greater degree of protection than ever before for our U.S. deployed forces and NATO allies.”

The Block IIA includes larger rocket motors that allow the missile to fly at faster speeds and longer ranges than the legacy SM-3. It also is equipped with a larger kinetic warhead.

MDA and the Navy cooperatively developed SM-3 Block IIA with the Japanese government.