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Pentagon Awards Raytheon $20.7 Billion for AMRAAM Missiles Amid Stockpile Concerns
- •The Pentagon awarded RTX's Raytheon a provisional multiyear contract worth $20.7 billion to accelerate AMRAAM missile production.
- •The move aims to replenish stockpiles depleted by conflicts in West Asia and Ukraine, and address concerns about inventories.
- •AMRAAM missiles are used in air-to-air combat and in the NASAMS air defense system, deployed in Washington and by over a dozen countries.
- •This contract is part of the Pentagon's push to pressure contractors to ramp up output faster, following a similar $58.6 billion Patriot interceptor deal.
- •Industry executives caution that Congress has not yet appropriated the full funding, potentially hindering contractors' investment in components and facilities.
Key Questions Answered
The Pentagon awarded RTX’s Raytheon business a provisional multiyear contract worth $20.7 billion to accelerate the production of AMRAAM missiles in order to replenish military stockpiles depleted by conflicts in Ukraine and West Asia, as well as operations in Iran.
The AMRAAM missile is utilized in air-to-air jet fighter combat and powers the National Advanced Surface-to-Air Missile System (NASAMS), which defends the Washington area and is deployed by numerous countries including Ukraine, Oman, and Qatar.
Industry executives have cautioned that Congress has not yet appropriated the necessary funding to support the full multiyear commitment, meaning contractors may be unable to scale up investments in components and facilities until lawmakers act.
