Washington, Sep 29 (IANS) The US Department of War said that it had awarded Raytheon a contract worth up to $20.7 billion to produce AMRAAM missiles for American and allied forces, putting a long-term agreement behind its effort to expand weapons manufacturing.

The contract was awarded on September 25 and announced three days later. It runs for five years, with options for two more. The $20.7 billion figure is its maximum stated value, not an amount the department said it had already spent.

The department described the award as a joint investment involving the US Air Force, Navy and allies buying through the Foreign Military Sales programme. It said the arrangement would help expand domestic production of the Advanced Medium-Range Air-to-Air Missile, known as AMRAAM.

“We are working across the defense industry to ramp production and build the Arsenal of Freedom,” said Michael P. Duffey, the under secretary of war for acquisition and sustainment.

“This award strengthens our ability to equip the Joint Force and our allies with a proven air-to-air capability, ensuring our warfighters maintain a decisive advantage,” he said.

The department said AMRAAM production had nearly doubled compared with previous levels. Raytheon gave a more specific comparison: its parent company, RTX, said production in 2025 was nearly twice that of 2024. Neither announcement stated how many missiles were produced in either year.

Raytheon said the contract followed an earlier agreement supporting annual production of at least 1,900 AMRAAMs. That is a production goal, separate from the value of the new award. The company did not specify how many missiles would be delivered under this contract or provide a delivery timetable.

The department thanked Congress for providing multiyear procurement authority for AMRAAM. It also said further authority and funding would help sustain production and give manufacturers greater certainty in the years ahead. Its statement did not specify the additional funding sought.

Raytheon President Phil Jasper said the company was expanding its workforce, supply chain and facilities to meet demand from the US military and international partners.

“We continue to make significant investments in our workforce, technology, supply chain and facilities to rapidly scale production capacity and meet surging demand from the U.S. Air Force, Navy and our international partners,” Jasper said.

RTX said hundreds of small and mid-sized US suppliers were involved in the expansion. It was also exploring production with partners overseas, though it named no country or company for that work.

Raytheon said AMRAAM is fielded by 44 countries and operates on 14 platforms. It can be used in air-to-air combat and as an interceptor in the ground-based NASAMS air defence system. Those uses make the pace of production relevant to more than one part of the US and allied forces.

The US Navy describes AMRAAM as a radar-guided, solid-fuel air-to-air missile. Raytheon says its newer generation includes updated guidance and software capabilities.

--IANS

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