9 July 2013
The Missile Defense Agency is cutting its order of Raytheon's Standard Missile-3 Block IB missiles, according to a contract modification announced by the Department of Defense Tuesday.
MDA had contracted for 24 missiles but cut that number to 20, a reduction of some $49 million. At the same time, however, MDA is investing $24 million in Raytheon's work towards resolving technical and production issues for the SM-3.
Integration and testing of the SM-3 and SM-6 are done at Raytheon's facility at Redstone Arsenal.
The changes reduce the total value of the contract from $1.93 billion to around $1.90 billion.
MDA said it is keeping the option to add the four SM-3s back into the order at a later date.
Also, Lockheed Martin has been awarded a $53.6 Air Force contract for six B-2 line replacement units, data, materials and overhaul management. Work will be performed in Owego, N.Y. and is expected to be complete by July 2018.
Hellfire Systems LLC, of Orlando, Fla., was awarded a $7.6 million modification to a previous foreign military sales Army contract. The contract covers conversion of the Hellfire II Romeo Air-to-Ground Missiles to AGM-114R2 and AGM-114R9E.
The total value of the contract is $873 million and is for foreign military sales to Australia, Saudi Arabia and United Arab Emirates.
Army Contracting Command at Redstone Arsenal handled the contract.