Full Breakdown
Accelerating AMRAAM Production: Pentagon’s $20.7 B Contract with Raytheon
By Drooid · · How we work
Core Event – Multi-Year Contract to Boost AMRAAM Output
The U.S. Department of Defense awarded RTX’s Raytheon business a five-year multiyear contract, with two optional years, valued at up to $20.7 billion. The award is intended to nearly double production of the Advanced Medium-Range Air-to-Air Missile (AMRAAM) and to sustain the “Arsenal of Freedom” effort to rebuild depleted munitions stockpiles. The contract covers the U.S. Air Force, Navy, and foreign-military-sales customers.
Background & Context
AMRAAMs are the primary beyond-visual-range interceptor for U.S. fighter aircraft and for the National Advanced Surface-to-Air Missile System (NASAMS). Conflicts in Ukraine, the Middle East, and operations involving Iran have drawn down U.S. and allied inventories, prompting a broader push for multiyear procurement to lock in production rates and give suppliers certainty for investment. The contract follows February framework agreements that set an annual production target of at least 1,900 missiles.
Timeline
- September 25 2026 – Contract formally awarded (Raytheon press release).
- September 28 2026 – Pentagon announces the provisional multiyear award and notes that only about $240 million was obligated at signing.
- September 29 2026 – Department of Defense public statement reiterates the “Arsenal of Freedom” rationale.
Data & Statistics
- Contract ceiling: $20.7 billion; initial obligation: ? $240 million.
- Target output: >= 1,900 AMRAAMs per year, representing an almost 100 % increase over prior rates.
- Approximate unit cost: ? $1 million per missile (per AZPM).
- Current fielding: 44 countries on 14 aircraft platforms; more than 7,000 successful live-fire tests.
- Production trend: RTX reports nearly doubled output in 2025 versus 2024.
Official Statements & Responses
The contract is structured as an undefinitized contract action, allowing work to begin before final quantities and funding are fully appropriated.
Conflicting Reports & Gaps
- Funding status: Reuters and SOFX note that Congress has not yet appropriated the full $20.7 billion, describing the award as “provisional.” The Pentagon’s own release does not specify how much of the ceiling will be funded.
- Quantity details: Neither the Pentagon nor Raytheon disclosed the exact number of missiles covered by the contract or the annual production rate tied to the award, beyond the framework target of 1,900 units.
- Future financing: The contract’s continuation into the optional years depends on congressional appropriations expected under a continuing resolution beginning later this month; the outcome remains uncertain.
Verbatim Quotes
- “We are working across the defense industry to ramp production and build the Arsenal of Freedom,” — Michael Duffey, pentagon acquisition chief
- “AMRAAM remains the world's most trusted, combat-proven air dominance weapon for the United States and our allies, delivering beyond-visual-range lethality with advanced guidance and electronic protection in contested environments,” — Raytheon President Phil Jasper
- “We continue to make significant investments in our workforce, technology, supply chain and facilities to rapidly scale production capacity and meet surging demand from the US Air Force, Navy and our international partners.” — Phil Jasper, raytheon president
- “We continue to make significant investments in our workforce, technology, supply chain and facilities,” — Phil Jasper, raytheon president
These statements capture the strategic intent, confidence in the missile’s performance, and the company’s commitment to scaling production.