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Stock Markets April 15, 2026 05:46 PM

Raytheon Secures $234.7M Award to Move AMRAAM ER Into Production

Cost-plus, fixed-fee undefinitized contract funds transition work at Tucson plant and includes multiple Foreign Military Sales partners

By Hana Yamamoto
Raytheon Secures $234.7M Award to Move AMRAAM ER Into Production

Raytheon Co. of Tucson, Arizona, received an award worth up to $234.7 million from the U.S. Department of War to support the Advanced Medium-Range Air-to-Air Missile Extended Range (AMRAAM ER) Transition to Production program. The cost-plus, fixed-fee undefinitized contract covers the activities needed to move the AMRAAM ER into full-rate production, with work performed at Raytheon's Tucson facility and an expected completion date of April 13, 2030. The award includes Foreign Military Sales to six countries and was issued via a sole source acquisition. At the time of award, $61.6 million in Foreign Military Sales funds were obligated. The contracting activity is the Air Force Lifecycle Management Center Weapons Superiority Contracting Branch at Robins Air Force Base, Georgia.

Key Points

  • Raytheon Co. was awarded a contract valued up to $234.7 million by the U.S. Department of War for the AMRAAM ER Transition to Production program.
  • The contract is a cost plus fixed-fee undefinitized action to support activities that will transition the AMRAAM ER into full-rate production, with work to be performed at Raytheon's Tucson facility and completion expected by April 13, 2030.
  • The award includes Foreign Military Sales to Hungary, Kuwait, Lithuania, the Netherlands, Norway, and Taiwan; $61.6 million in FMS funds were obligated at the time of award, and the contracting activity is the Air Force Lifecycle Management Center Weapons Superiority Contracting Branch at Robins Air Force Base, Georgia.

Raytheon Co., based in Tucson, Arizona, has been awarded a contract valued at up to $234.7 million by the U.S. Department of War for work tied to the Advanced Medium-Range Air-to-Air Missile Extended Range (AMRAAM ER) Transition to Production program.

The contract is structured as a cost plus fixed-fee undefinitized contract action and is intended to support the set of activities required to transition the AMRAAM ER into full-rate production. Under the terms of the award, the physical work supporting the program will be carried out at Raytheon's Tucson facility. The contract specifies an expected completion date of April 13, 2030.

The award explicitly includes Foreign Military Sales (FMS) components to Hungary, Kuwait, Lithuania, the Netherlands, Norway, and Taiwan. The contract was issued through a sole source acquisition process.

At the time the award was announced on Monday, Foreign Military Sales funds totaling $61.6 million were obligated to the contract. The Air Force Lifecycle Management Center Weapons Superiority Contracting Branch at Robins Air Force Base in Georgia is listed as the contracting activity for the program.

This contract covers the transition-related activities necessary to move the AMRAAM ER from its current development or low-rate production phase into an established, full-rate production posture for the missile. The cost-plus, fixed-fee undefinitized nature of the action indicates that certain contractual terms and final pricing details remain to be finalized while work proceeds under the award.

The inclusion of six named Foreign Military Sales partners in the award indicates the contract encompasses international deliveries or support tied to those customers. The sole source acquisition route used to make the award is identified in the contracting record. The stated obligation of $61.6 million in FMS funds at the time of award reflects funds recorded against the contract upon award.

Sectors impacted: Defense, aerospace manufacturing, and government procurement.

Risks

  • Undefinitized contract status - the cost plus fixed-fee undefinitized structure means final contractual terms and total payments have not yet been fully established, introducing contractual uncertainty (impacts defense and government contracting sectors).
  • Extended program timeline - the contract's expected completion date of April 13, 2030 represents a multi-year schedule that introduces timeline uncertainty for production transition activities (impacts aerospace manufacturing and defense procurement sectors).
  • Partial obligation at award - Foreign Military Sales funds of $61.6 million were obligated at award, indicating the level of funds recorded at that time but not necessarily the full funding profile for the contract (impacts government budgeting and defense export financing).

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