Raytheon, an RTX business, has secured a five-year contract for Standard Missile-6 (SM-6) interceptors.
The contract includes two additional option years and has a maximum value of $24.4 billion. It is intended to increase the availability of SM-6 missiles for offensive strike and missile defense missions.
The order follows agreements between Raytheon and the Department of War and is intended to provide a sustained supply of SM-6 interceptors to the US Navy.
"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."
Raytheon has invested heavily to keep pace with rising demand. SM-6 is the only combat-proven weapon that can perform anti-air warfare, anti-surface warfare and ballistic missile defense. It has been successfully fired from various US Navy ship-based platforms and launchers on land.