SM-6 missiles in $24.4bn Pentagon production deal

The Pentagon has awarded Raytheon a $24.4 billion contract to speed production of SM-6 missiles as Washington works to rebuild munitions stocks used during the war against Iran.

The Pentagon said Thursday that the five-year agreement, with two additional option years, is intended to drive faster production of the missiles, which it described as critical anti-air and anti-surface warfare munitions.

The department said the deal would give the defence industry long-term predictability to expand workforce capacity and secure supply chains.

The Defense Department inspector general said last month that munitions use in Operation Epic Fury, the US operation against Iran, had caused strategic inventory shortfalls and exposed bottlenecks in resupply. A September 15 Congressional Budget Office report said reduced missile defence inventories would last for several years.

Raytheon said its SM-6 has been fired from US Navy ship-based platforms and land launchers. Raytheon president Phil Jasper said the company was investing in operations and facilities to remove constraints and increase capacity.

The United States and Israel launched attacks on Iran on February 28. Tehran continues to exert control over the Strait of Hormuz, while Washington is blockading Iranian ports. The Wall Street Journal reported that President Donald Trump has told aides he expects to resume bombing Iran by late November.