The Department of War and U.S. Navy announced a contract valued at up to $24.4 billion with Raytheon, a subsidiary of RTX, to accelerate production of the Standard Missile-6 on Oct. 1.
Acting Secretary of the Navy Hung Cao announced the five-year contract, which includes two option years, calling it a critical step in rebuilding the nation’s munitions production capacity at a time of heightened global competition.
The SM-6 is a multi-mission missile capable of engaging airborne targets, cruise missiles and surface vessels. It serves as a cornerstone of the Navy’s integrated air and missile defense architecture aboard destroyers and cruisers deployed worldwide.
At $24.4 billion, the award ranks among the largest single munitions production contracts in recent U.S. defense history. The scale reflects the administration’s stated priority of expanding the defense industrial base and replenishing weapons stockpiles that have been drawn down by commitments in Ukraine and the Indo-Pacific.
The contract addresses what Pentagon officials have described as a critical gap in U.S. missile production capacity. Defense analysts have warned for years that American munitions manufacturing lines cannot keep pace with the rate at which advanced weapons would be consumed in a potential conflict with a near-peer adversary such as China.
Raytheon, headquartered in Arlington, Virginia, is the sole producer of the SM-6. The company and its parent corporation RTX have invested in expanding production facilities in recent years, but the new contract is designed to further accelerate output beyond current capacity.
The deal has direct implications for American taxpayers and the defense workforce. Missile production supports thousands of jobs across Raytheon’s supply chain, which spans multiple states.
For Navy sailors and their families, the SM-6 is the weapon system most likely to be called upon first in a naval conflict, making its availability a matter of operational readiness and personnel safety.
The House and Senate Armed Services Committees have oversight over major defense acquisitions and are expected to review the contract’s terms and production benchmarks.