US Navy awards $24.4 billion to accelerate production of Standard Missile-6
Washington, Oct 2 (IANS/WISHAVWARTA) The US Navy has awarded Raytheon a contract valued at up to $24.4 billion to accelerate production of Standard Missile-6 interceptors, as the Pentagon moves to expand manufacturing capacity for critical missiles and strengthen its weapons stockpiles.
The five-year agreement, which includes two additional option years, is intended to increase manufacturing throughput and provide the defence industry with longer-term certainty to expand production, the Pentagon said Thursday.
The SM-6 is a multi-mission missile used for anti-air warfare, anti-surface warfare and missile defence.
“Our mission is to ensure our warfighters never enter a fair fight,” said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment.
“This multi-year award locks in the magazine depth and lethal dominance our forces need to prevail, while demanding our industrial base produce at war-speed,” he said.
The Pentagon said the agreement would drive faster production and generate cost savings across the defence industrial base.
The award is part of a wider US effort to increase production of key munitions and provide defence manufacturers with longer-term procurement commitments.
The Pentagon said the SM-6 agreement, together with a recent Tomahawk weapon-system award, would give the defence industry greater predictability to expand its workforce and secure critical supply chains.
“Together, these strategic investments ensure our warfighters remain equipped with the advanced capabilities required to maintain global maritime superiority,” the Pentagon said.
Raytheon, an RTX business, separately said the agreement would significantly increase the availability of SM-6 interceptors for the US Navy.
“SM-6’s multi-mission capability is vital to our customer, and Raytheon is intensely focused on meeting the demand,” Raytheon President Phil Jasper said.
“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,” he said.
Raytheon said it has invested in its operations and facilities, expanded its skilled workforce, strengthened partnerships across the defence industrial base and increased automation as it seeks to boost production.
The company describes the SM-6 as capable of conducting offensive strikes as well as missile-defence missions.
The missile can be fired from US Navy ships and land-based launchers, giving naval forces a weapon capable of responding to different categories of threats.
Thursday’s announcement follows another major missile-production agreement involving Raytheon.
Earlier this week, the Pentagon announced a multiyear arrangement valued at up to $20.7 billion to accelerate production of Advanced Medium-Range Air-to-Air Missiles, or AMRAAMs.
The large contracts reflect Washington’s effort to give weapons manufacturers greater visibility over future demand so they can invest in facilities, workers and supply chains needed to raise production rates.
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