Pentagon is preparing contract worth more than $20 billion for production of AMRAAM missiles, - Reuters
The Pentagon has signed a preliminary multi-year contract worth $20.7 billion with RTX’s Raytheon missile division to accelerate the production of AMRAAM missiles.
Reuters reported this, according to Censor.NET.
Details
According to the publication, the U.S. military is thus seeking to replenish its weapons stockpiles, which have been depleted by conflicts in the Middle East and Ukraine.
The AMRAAM is used in air-to-air combat between fighter jets, as well as as part of the NASAMS system. It is used to defend Washington, D.C., as well as more than a dozen other countries, including Ukraine, Oman, and Qatar.
The prospective AMRAAM deal is the latest in a series of large munitions contracts the Pentagon has pursued this year to pressure contractors into ramping output up faster.
The award follows a similar pattern to a $58.6 billion Patriot interceptor deal awarded to Lockheed Martin, a seven-year procurement plan running through fiscal 2032," the article states.
A Congressional decision is needed
At the same time, journalists note that the U.S. Congress has not yet allocated the funds necessary to fulfill the full multiyear commitment.
Consequently, manufacturers may not be able to invest on a large scale in components and production capacity until lawmakers pass the necessary legislation.
If Congress ultimately allocates the necessary funds, the contract will allow RTX to continue investing in personnel, supply chains, and production capacity amid a sharp increase in demand in the U.S.
The company stated that in 2025, it nearly doubled AMRAAM production compared to the previous year.
Earlier this year, RTX announced that it had set an annual production target of at least 1,900 AMRAAM missiles.
