The U.S. Air Force issued another long-term contract for ballistic missile systems, this time a seven-year award to Raytheon for Advanced Medium-Range Air-to-Air Missiles (AMRAAM.) The “fixed-price incentive firm and firm-fixed-price-undefinitized contract” - which does not stipulate the volume of missiles to be supplied by sets a final contract price according a pre-agreed formula - has a full value of $20.7 billion.

The AIM-120 AMRAAM is a supersonic air-to-air missile system developed by Raytheon for use by the USAF and U.S. Navy, and more than 40 nations’ defense forces.

An AIM-120 AMRAAM-Extended Range missile is available as a ground-launched system for intercepting targets at longer distances and higher altitudes.

Having established a priority to advance missile technologies and rebuild missile inventories, the Pentagon has restructured its weapons procurement program around longer-term (seven-year) contracts, to incentivize installation of new production capacity. This year this has included several multi-billion-dollar awards to Raytheon for Patriot cruise missiles, AIM-9X air-to-air missiles, and Tomahawk precision-strike missiles.

Under the new award Raytheon will produce AIM-120 AMRAAM rounds, guidance sections, and direct charge packages at its Tucson, Ariz., plant through June 2033.

The missiles to be manufactured will be supplied to defense forces in Australia, Belgium, Canada, Czech Republic, Denmark, Finland, Germany, Italy, Japan, Kuwait, Netherlands, Norway, Poland, Sweden, Taiwan, and the United Kingdom through the Pentagon’s foreign military sales program.