2005 Orders for SM-2 Standard Missiles: $266M

Yesterday, we noted a $29.6 million contract (N00024-03-C-5330) to provide engineering and technical services in support of the Standard Missile-2 Guided Missile Program for Foreign Military Sales (FMS). As a follow-on to that contract, Raytheon Co. in Tucson, AZ received a $266 million firm-fixed-price modification for production of the FY 2005 SM-2 missile order to equip the U.S. Navy and the navies of Japan, the Netherlands, Germany, Taiwan, Canada, and Korea respectively. The SM-2 is the ultra-modern air defense missile on US warships equipped with advanced AEGIS radars, and a variant called the SM-3 is being tested as part of U.S. ballistic missile defense plans.
U.S. Navy orders include agreed quantities of Block IIIA All-Up-Rounds (AUR), Block IIIB AUR, Block IIIB ORDALT kits, AN/DKT-71A Telemetric Data Transmitting Sets (TDTS), and section level spares. The contract also includes procurement for other navies under the Foreign Military Sales Program of 99 SM-2 Block IIIA AUR, 64 SM-2 Block IIIB AUR, 51 AN/DKT-71A TDTS with Installation Kits, 25 various foreign military sales spare sections and 161 shipping missile containers. Work will be performed in Tucson, AZ (56%), Andover, MA (23%), Camden, AR (20%), and Farmington, NM (1%), and is expected to be completed by December 2007. The Naval Sea Systems Command in Washington, DC, issued the contract (N00024-04-C-5342).