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US Navy signs long-term RTX deal to increase SM-6 production

The US Navy awarded RTX’s Raytheon business a contract worth up to 24.4 billion dollars to accelerate SM-6 missile production. The basic five-year term includes two additional option years. The Navy aims to expand industrial capacity and strengthen fleet munitions inventories through stable, long-term demand. The maximum contract value does not represent spending that is already fully committed.

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An interceptor missile rests in an open horizontal transport cradle at a production facility.

Navy orders years of SM-6 production

The US Navy awarded RTX’s Raytheon business a contract worth up to 24.4 billion dollars to accelerate production of the Standard Missile-6, known as the SM-6.[1], [2]

The weapon serves ship-based air-defence and strike missions. Increasing its output is part of the Navy’s effort to secure a dependable supply of critical munitions.[1]

Announced on 1 October, the agreement has a basic term of 5 years and 2 additional option years. Its upper value covers the contract’s potential scope rather than expenditure already fully committed.[1]

Long-term demand targets industrial capacity

The procurement is led by the Navy’s new munitions acquisition office. Chief of Naval Operations Admiral Daryl Caudle said the fleet needed weapons supplied at the speed and scale its operations required. He described demand stability as a means of expanding industrial capacity and deepening munitions inventories.[1]

Budget request seeks more Standard Missiles

The Navy’s fiscal-year 2027 budget request seeks 4.3 billion dollars for 540 Standard Missiles and includes plans for a multiyear SM-6 purchase. Congress has not yet passed that appropriations bill. Acting Navy Secretary Hung Cao had praised improvements in SM-6 production and deliveries in July, after Trump criticised RTX earlier in the year.[1]

References

  1. News sourceInside DefenseUS Navy awards SM-6 production contract worth up to $24.4 billion↩1↩2↩3↩4↩5
  2. News sourceBloomberg NewsRTX receives long-term US Navy contract to increase SM-6 output↩
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