The Department of War (DoW) has awarded a $20.7 billion contract to Tucson-based weapons manufacturer Raytheon for the production of new missiles.
The new contract is aimed at increasing the United States’ stockpile of Advanced Medium Range Air-to-Air Missiles (AMRAAMs). These missiles are used by fighter jets and surface-to-air missile defense systems such as the National Advanced Surface-to-Air Missile System (NASAMS), which operates in Washington D.C and Ukraine. Each AMRAAM costs approximately $1 million.
DoW Under Secretary for Acquisition and Sustainment Michael P. Duffey couched the purchase in terms of bolstering American military power.
"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 in a press release.
The deal comes as the Pentagon tries to replenish missile stockpiles that are severely depleted after several months of conflict in the Middle East and years of supplying allies such as Ukraine.
AMRAAMS are often used to strike down drones such as Iran’s infamous Shahed-136 — a cheap loitering munition that has been used extensively in Iran’s attacks on U.S. military bases, and that Russia has employed in Ukraine.
Though exact numbers have not been published on the use of AMRAAMS in the Iran War, an analysis from The Center for Strategic and International Studies (CSIS) showed that stockpiles of other essential interceptor munitions have been decimated, and that it could take between one and four years to replenish them to pre-Iran levels.
The Raytheon deal comes after a \$53 billion contract was awarded to Lockheed Martin in June for the production of new Patriot missiles. Both awards are part of the DoW’s “Arsenal of Freedom” — a shift towards longer, multi-year contracts aimed at enlarging the country’s munitions stockpiles.
Prior to the announcement, Raytheon had already been betting on AMRAAMs. It says it nearly doubled its production from 2024 to 2025, and aims to produce 1,900 AMRAAMs annually starting in 2027\.
The DoW claims the acquisition will create 3,000 new aerospace manufacturing jobs in Tucson and around the country. The contract will last for five years, with two additional option years — potentially extending production into 2033\.
