Stock Markets June 24, 2026 05:22 PM

Raytheon Secures $398.7M Air-to-Air Missile Contract from U.S. Department of War

Contract funds design and preliminary manufacturing reviews for AMRAAM family; work assigned to Tucson with FMS obligations for 31 partner nations

By Hana Yamamoto
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The Pentagon announced that Raytheon Co. has been awarded a $398.7 million contract to support Advanced Medium Range Air-to-Air Missile (AMRAAM) D4/C9 system requirements and preliminary design review activities. The cost-plus-fixed-fee and cost-reimbursement undefinitized award will fund proof-of-design and proof-of-manufacturing work to be done in Tucson, Arizona, and includes Foreign Military Sales commitments to 31 countries. The Air Force Lifecycle Management Center at Robins Air Force Base is the contracting activity, and $104.1 million in FMS funds are being obligated at the time of award. Completion is expected by Dec. 11, 2027.

Raytheon Secures $398.7M Air-to-Air Missile Contract from U.S. Department of War
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Key Points

  • Raytheon received a $398.7 million undefinitized contract to support D4/C9 AMRAAM system requirements review and preliminary design review activities.
  • Work will be performed in Tucson, Arizona, and includes proof-of-design and proof-of-manufacturing tasks rather than production work.
  • The contract involves Foreign Military Sales to 31 countries, with $104.1 million in FMS funds being obligated at the time of award; contracting activity is the Air Force Lifecycle Management Center at Robins Air Force Base.

The Pentagon announced Tuesday that Raytheon Co. has received a $398.7 million contract from the U.S. Department of War to advance work on the Advanced Medium Range Air-to-Air Missile (AMRAAM) family.

The award is structured as a cost-plus-fixed-fee and cost-reimbursement undefinitized contract action. It is intended to support D4/C9 system requirements review and preliminary design review activities, explicitly incorporating efforts for proof of design and proof of manufacturing.

All contracted work will be performed in Tucson, Arizona, where Raytheon is based. The scope as stated covers design and early manufacturing validation tasks rather than production quantities.

The contract includes Foreign Military Sales (FMS) components covering 31 countries. Those nations named in the announcement are the United Arab Emirates, Argentina, Australia, Belgium, Bulgaria, Canada, Denmark, Estonia, Finland, Germany, Hungary, Israel, Italy, Japan, South Korea, Kuwait, Lithuania, Morocco, Netherlands, Norway, Peru, Poland, Romania, Singapore, Spain, Saudi Arabia, Sweden, Switzerland, Turkey, Taiwan, and the United Kingdom.

Contracting authority for the award is the Air Force Lifecycle Management Center at Robins Air Force Base, identified under the designation FA8556-26-C-B003. At the time of award, FMS funds totaling $104.1 million are being obligated to the contract.

The announcement specifies an expected completion date of Dec. 11, 2027, for work performed under this contract.


Clear summary - Raytheon will perform design and preliminary manufacturing validation work for AMRAAM D4/C9 under a $398.7 million cost-plus-fixed-fee and cost-reimbursement undefinitized contract awarded by the U.S. Department of War. The effort is based in Tucson and includes FMS participation from 31 named countries, with $104.1 million of FMS funds obligated at award. The Air Force Lifecycle Management Center at Robins Air Force Base is the contracting activity, and the contract is expected to conclude by Dec. 11, 2027.

Risks

  • The contract is undefinitized and structured as cost-plus-fixed-fee and cost-reimbursement, which can expose the awarding agency and contractor to cost variability - this is relevant to defense budgets and contractor cash flow.
  • The award funds design and preliminary manufacturing validation rather than production, leaving future production-phase awards and timelines uncertain - this affects defense procurement and aerospace manufacturing planning.
  • A portion of the contract value is covered by Foreign Military Sales commitments to 31 countries, which could create exposure to changes in partner nation funding or policy decisions - this impacts international defense trade and related sectors.

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