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U.S. Navy, RTX Strengthen Munitions Production Through SM-6 Award
WASHINGTON — Acting Secretary of the Navy Hung Cao announced today that the Department of the Navy awarded Raytheon, an RTX business, a five-year contract, with two additional option years, valued at up to $24.4 billion to accelerate production of the Department’s critical anti-air and anti-surface warfare munition, Standard Missile-6 (SM-6).
“Maritime strength demands weapons at speed and scale,” said Cao. “This investment expands production and delivers the firepower our warfighters need to fight, win, and come home safe.”
The award is part of the Department’s broader effort to increase weapons production and strengthen the industrial base needed to sustain the Fleet.
“Combat credibility depends on having enough weapons, produced at the speed and scale the Fleet requires,” said Adm. Daryl Caudle, Chief of Naval Operations. “This SM-6 award gives industry the demand signal and stability to expand production, strengthen the munitions industrial base, and build the magazine depth our Fleet needs. That is the Foundry delivering for the Fleet - and ensuring our Sailors have the combat power to fight and win.”
The SM-6 contract establishes a multi-year procurement commitment that provides industry with the stability and predictability needed to expand production capacity while delivering cost savings through a negotiated, long-term agreement. The investment will support increased manufacturing throughput and strengthen the industrial base supporting this critical capability.
“This award demonstrates what is possible when the Department leverages innovative acquisition approaches to deliver capability at the speed of relevance,” said Ms. Van Hendrey, Portfolio Acquisition Executive for Munitions. “Through PAE Munitions, we are bringing together the authorities, resources, and partnerships needed to accelerate production, reduce costs, and strengthen the industrial base that supports our warfighters.”
Following the recent Tomahawk award, this action is part of a broader effort across PAE Munitions to accelerate the production and delivery of critical weapons. Under the strategic direction of PAE Munitions, the Navy is improving enterprise-level integration, strengthening partnerships with industry, and advancing a more agile approach to delivering weapons capabilities.
By providing industry with greater stability and predictability, these actions enable expanded workforce capacity, increased manufacturing throughput, and stronger supply chains. Together, they reinforce the Department’s commitment to rebuilding the defense industrial base and ensuring Navy and Marine Corps forces remain equipped with the advanced weapons required to maintain maritime superiority.
Portfolio Acquisition Executive (PAE) Munitions is a Department of the Navy organization responsible for the development, procurement, and delivery of naval munitions and strike capabilities. By unifying key weapons programs and aligning the weapons industrial base, PAE Munitions provides enterprise-level integration to accelerate production, increase capacity, and ensure the Fleet is equipped with the munitions needed to project power and win.
$24.4B awarded for SM-6 production
