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Missile Defense

MDA Awards First Multi-Year Contract As Raytheon Wins $2 Billion For SM-3 IB

Rich Abott By
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MDA Awards First Multi-Year Contract As Raytheon Wins $2 Billion For SM-3 IB
A Standard Missile-3 (SM-3) Block 1B interceptor missile is launched from the guided-missile cruiser USS Lake Erie (CG-70) during a Missile Defense Agency and Navy test in the mid-Pacific in May 2013 (Photo: U.S. Navy)

The Missile Defense Agency (MDA) awarded Raytheon [RTN] its first-ever multi-year contract in a $2.1 billion sole-source contract on March 26 to build Standard Missile-3 Block IB (SM-3 IB) all up rounds for the U.S. and an unnamed Foreign Military Sales (FMS) partner. The contract announcement underscored this is a hybrid of a fixed-price incentive, firm-fixed-price and cost-plus-fixed fee award covering five fiscal years from 2019-2023. MDA spokesman Mark Wright told Defense Daily in an email that “a total of…

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