The US Defense Department has awarded RTX’s Raytheon business a contract worth up to $20.7 billion to increase production of Advanced Medium-Range Air-to-Air Missiles (AMRAAMs).
The five-year multiyear agreement also includes two optional years, allowing the contract to potentially run for seven years. The deal is part of a wider Pentagon initiative to strengthen the US defense manufacturing base and expand the availability of key munitions.
According to the Defense Department, the agreement is expected to nearly double AMRAAM production from previous levels. The increased output is intended to support US military requirements as well as the country’s allies.
Under Secretary of Defense for Acquisition and Sustainment Michael P. Duffey said the deal would help expand defense production and strengthen the military’s ability to supply US and allied forces with established air-to-air missile capabilities.
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