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Home » Raytheon Wins Up to $20.7B Contract to Build AMRAAM Missiles Through 2033

Raytheon Wins Up to $20.7B Contract to Build AMRAAM Missiles Through 2033

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Raytheon Wins Contract Build Amraam Missiles

WASHINGTON, September 30 — Raytheon, a subsidiary of RTX Corporation, has secured a not-to-exceed $20.7 billion multiyear contract from the U.S. Air Force for the production and sustainment of Advanced Medium-Range Air-to-Air Missiles (AMRAAM), with performance scheduled through June 2033. The award, valued at up to $20.699 billion, includes approximately $154.4 million in initial obligations at the time of award. It is structured as a five-year multiyear agreement with two option years, combining fixed-price incentive firm and firm-fixed-price indefinite-delivery contract types.

The contract covers AMRAAM All-Up Rounds, guidance sections, direct charges, and Foreign Military Sales (FMS) offsets. FMS requirements under the contract include Australia, Belgium, Canada, the Czech Republic, Denmark, Finland, Germany, Italy, Japan, Kuwait, the Netherlands, Norway, Poland, Sweden, Taiwan, and the United Kingdom.

The AMRAAM missiles were acquired on a sole-source basis. The contract supports the production and sustainment of the AIM-120D variant, which features a two-way datalink, GPS-enhanced inertial measurement unit, expanded no-escape envelope, improved high-angle off-boresight capability, and increased range compared to earlier versions. The latest iteration, the AIM-120D-3, incorporates hardware and software improvements from the AMRAAM Form, Fit, Function Refresh (F3R) program, a comprehensive redesign affecting 15 circuit-card assemblies that replaces early-2000s technology components while preserving the missile’s form, fit, and function.

Air Force officials noted that the refreshed hardware provides a foundation for future software updates. The missile employs inertial guidance, midcourse updates, and an onboard active radar seeker, with the two-way datalink enabling connectivity to broader engagement architectures before terminal guidance.

The Air Force defines AMRAAM’s mission as engaging high- and low-altitude, high-speed targets in electronic-countermeasures environments, supporting longer-range engagements and reducing reliance on close-in maneuvering. Beyond fighter aircraft, AMRAAM serves as the interceptor for the National Advanced Surface-to-Air Missile System (NASAMS), providing a common missile family for both air-to-air and ground-based air defense. RTX states that AMRAAM operates on 14 platforms and is fielded by 44 countries.

The contract includes a mechanism to substantially increase production capacity, with RTX having previously announced in February that its agreement with the Department of Defense calls for annual AMRAAM production to rise to at least 1,900 missiles — a record-setting level. This expansion aligns with broader Pentagon efforts to accelerate weapons production amid concerns over U.S. munitions inventories following recent operations and continued security assistance to allies. The contract does not specify the total number of missiles to be delivered or identify the exact variant or configuration mix for delivery.

As production ramps up under this new framework, attention will turn to how the increased output integrates with allied force structures and whether the F3R refresh delivers the anticipated longevity and upgrade path for the AIM-120 family through the 2030s.

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