The U.S. Department of Defense has signed a $6.3 billion contract with Raytheon for the production of SM-3 Block IB missile defense systems. The contract is for a five-year period, with an option to extend it for an additional two years.
The Pentagon's press service released the information, Operativ Media reports.
Michael Duffy, the U.S. Deputy Secretary of Defense for Acquisition and Military Procurement, stated that the contract will ensure production stability in the military-industrial complex, eliminate bottlenecks at the subcontractor level, and enable the supply of necessary missile defense assets to the U.S. Navy and ground forces.
SM-3 missiles are capable of destroying short- and medium-range ballistic missiles. U.S. Navy destroyers used these missiles during the war with Iran.
According to Raytheon, the SM-3 Block IB variant is equipped with an improved seeker head, updated control systems, and a rocket motor that uses short thrust pulses to reach the target.
In mid-September, a report by the Pentagon's Office of the Inspector General, which performs an independent oversight function, reported a shortage of ammunition due to the war with Iran.
Additionally, the U.S. Congressional Budget Office expressed concern over the depletion of the country's missile defense stockpiles. According to the agency, the U.S. has used between half and two-thirds of its stockpile of this type of ammunition as of June 2025.
