Raytheon Company has received a $380.8 million contract modification from the U.S. Department of War to support continued work on the Tomahawk missile system. This contract amendment finalizes a fixed-price incentive and firm-fixed-price agreement, increasing the overall contract value to $476.5 million. The modification broadens the scope to include essential recertification and modernization services for Tomahawk missile Lots Five and Six. It also encompasses depot maintenance operations, hardware recertification, and the supply of missile spares and replacement parts.
The majority of this work will be conducted across several U.S. locations, with the highest activity in Tucson, Arizona (30% of the effort), followed closely by Boulder, Colorado (28%), and Pontiac, Michigan (11%). Completion of the contract's tasks is anticipated by April 2029.
Funding for this project will come from fiscal year 2024 and 2025 procurement resources allocated by different branches of the U.S. military. Of the total, $202.1 million originates from Navy weapon procurement funds, with an additional $155 million allocated from the fiscal 2025 Navy weapons budget. Foreign Military Sales (FMS) contribute $99.4 million, underscoring the international dimension of the program.
In a separate transaction, Raytheon secured a $59 million cost-plus-fixed-fee contract modification, providing engineering and technical support for Standard Missiles 2 and 6. This effort is connected to Foreign Military Sales agreements involving Australia, Chile, Denmark, and South Korea.
The Standard Missiles work is scheduled to take place primarily in Tucson, Arizona, with an expected completion date in March 2028. The funding is split between fiscal 2026 Navy research and development allocations (50%) and FMS funds from South Korea (25%), Chile (10%), Denmark (10%), and Australia (5%).