The Navy said the multiyear commitment gives manufacturers the demand stability needed to expand capacity and strengthen supply chains. The negotiated agreement is also intended to reduce costs and increase manufacturing throughput.
“Maritime strength demands weapons at speed and scale,” said Acting Secretary of the Navy Hung Cao. “This investment expands production and delivers the firepower our warfighters need to fight, win, and come home safe.”
The award follows a recent Tomahawk contract and forms part of a broader Navy effort to increase weapons production. Both actions sit within the work of the Portfolio Acquisition Executive for Munitions, which coordinates naval weapons development, procurement and delivery.
“Combat credibility depends on having enough weapons, produced at the speed and scale the Fleet requires,” said Adm. Daryl Caudle, Chief of Naval Operations. “This SM-6 award gives industry the demand signal and stability to expand production, strengthen the munitions industrial base, and build the magazine depth our Fleet needs.”
Raytheon said it has expanded its skilled workforce, invested in facilities and automated production to address rising demand. The company is also strengthening industrial partnerships to support higher output over the near and long term.
“SM-6’s multi-mission capability is vital to our customer, and Raytheon is intensely focused on meeting the demand,” said Raytheon President Phil Jasper. “By continuously investing in our operations and facilities, we are removing constraints and boosting capacity to ensure we deliver this critical capability our sailors depend on.”
SM-6 combines offensive strike and missile defense missions in a single weapon. Raytheon said it is the only combat-proven missile capable of anti-air warfare, anti-surface warfare and ballistic missile defense, with successful firings from Navy ships and land-based launchers.
The contract builds on earlier agreements between Raytheon and the Department of War to expand production. The Navy said predictable procurement supports workforce growth and the industrial capacity required to sustain fleet operations.
“This award demonstrates what is possible when the Department leverages innovative acquisition approaches to deliver capability at the speed of relevance,” said Van Hendrey, Portfolio Acquisition Executive for Munitions. “Through PAE Munitions, we are bringing together the authorities, resources, and partnerships needed to accelerate production, reduce costs, and strengthen the industrial base that supports our warfighters.”
