Raytheon Wins Up to $20.7 Billion for AMRAAM Missile Production

Raytheon Co. won an Air Force contract worth up to $20.7 billion to continue production of Advanced Medium-Range Air-to-Air Missiles (AMRAAM) for U.S. forces and foreign customers. The Sept. 25 award covers complete missiles, guidance sections, direct-charge items and foreign military sales offsets. Work will take place in Tucson, Arizona, and is expected to be completed by June 30, 2033. The Air Force Life Cycle Management Center made the award through a sole-source acquisition.

AMRAAM Production Details

Raytheon will produce AMRAAM all-up rounds—the complete missiles covered by the award—and guidance sections. The contract also includes direct-charge items and offsets associated with foreign military sales. The award notice identifies 16 foreign customers, including Australia, Japan, Taiwan and the United Kingdom.

The earlier production solicitation described a follow-on effort spanning Lots 41 through 47 for the Air Force, Navy and international customers. It also identified telemetry kits, initial spares and other components among the assets sought. The award notice expressly lists complete missiles and guidance sections, but does not break out quantities or delivery milestones for those items.

AMRAAM Program Background

AMRAAM is a joint Air Force–Navy program and a primary U.S. beyond-visual-range air-to-air weapon. Its active radar guidance allows the missile to continue tracking a target after launch; the AIM-120D variant also incorporates a two-way data link and GPS-enhanced inertial guidance, according to the Defense Department’s FY2026 weapon-system description.

The department has pursued multiyear AMRAAM procurement to give suppliers a more predictable production outlook, as described in its FY2025 budget overview. Air Force FY2026 production-planning materials list Raytheon’s Tucson operation with a minimum sustaining rate of 400 missiles a year and a maximum rate of 1,200. Those figures are planning parameters, not reported output.

Award and Contractor Background

The new contract is an undefinitized action, meaning its final terms remain to be settled, with a not-to-exceed value of $20.7 billion. It follows a July 2025 award to Raytheon worth up to $3.5 billion for AMRAAM Lots 39 and 40. That earlier production award covered missiles, telemetry systems, spares and production engineering support.

Raytheon also has related work on changes to AMRAAM production. A separate award worth up to $234.8 million covers separation of production and repair lines and activities to transition the extended-range variant into full-rate production. That effort is distinct from the newly awarded missile procurement.

This award was disclosed by the DoW in its daily press release. Additional contract details will be available on HigherGov in approximately 90 days under FA855626CB001 after the contract is formally disclosed by the government.