From Tucson to the Fleet: $258.7M Contract Powers SM-2 Block IIICU Development

Raytheon Co., Tucson, Arizona, was awarded a $258,742,330 cost-plus-incentive-fee contract for the engineering, manufacturing, and development of the Standard Missile 2 (SM-2) Block IIICU All Up Round. This contract includes options which, if exercised, would bring the cumulative value of this contract to $263,137,090. Work will be performed in Tucson, Arizona (72%); Simsbury, Connecticut (7%); Wolverhampton, United Kingdom (3%); Salt Lake City, Utah (3%); North Logan, Utah (1%); McKinney, Texas (1%); Warrington, Pennsylvania (1%); Bristol, Pennsylvania (1%); Hauppauge, New York (1%); Coxsackie, New York (1%); Tampa, Florida (1%); San Jose, California (1%); Anniston, Alabama (1%); and various other locations each less than 1% (6%), and is expected to be completed by September 2031. Fiscal 2025 research, development, test and evaluation (Navy) funds in the amount of $52,054,849 (65%); Foreign Military Sales (Canada) funds in the amount of $18,473,766 (23%); and fiscal 2024 research, development, test and evaluation (Navy) funds in the amount of $9,071,456 (11%), were obligated at time of award, of which $9,071,456 will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 3204(a)(1) (only one responsible source and no other supplies or services will satisfy agency requirements). Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-25-C-5413). (Awarded on July 31, 2025)