Raytheon Company Missile Systems has secured a $1 billion, five-year strategic agreement to purchase propulsion systems from Aerojet Rocketdyne for Standard Missile products, the company announced on Thursday.
"Moving to multi-year, rather than annual-year contracting enables Raytheon and its supply chain to deliver even more value to our Missile Defense Agency and U.S. Navy customers, and the taxpayer," said Eugene Jaramillo, Raytheon Missile Systems vice president of Global Supply Chain Management. "These multi-year agreements also allow our suppliers to transform the way they do business with Raytheon."
With the deal, Raytheon has cemented its supply chain centerpiece of multi-year Standard Missiles contracts that the company has recently received. Aerojet Rocketdyne will provide propulsion systems spanning for Raytheon's Standard Missile business.
The agreement will enhance the SM-2 missile, SM-3 interceptor and SM-6 missile, provided by Aerojet Rocketdyne. Aerojet Rocketdyne has supplied the majority of the solid rocket motors for the systems.
In addition, for SM-3, Aerojet Rocketdyne will continue to produce the Divert and Attitude Control System, a high-precision, quick-reaction propulsion system that will position the interceptor to defeat incoming ballistic missiles.
"Aerojet Rocketdyne has supported one or more variants of the Standard Missile program for more than three decades; we are proud of our contributions to these vital defense products," said Eileen Drake, Aerojet Rocketdyne CEO and president. "This significant agreement on multi-year contracts strengthens our current relationship and positions Aerojet Rocketdyne favorably for future business opportunities and continued growth."
The partnership integration will be spread across Aerojet Rocketdyne sites in Orange County, Virginia, the Solid Rocket Motor Center of Excellence in Camden, Arkansas, and at its Advanced Manufacturing Facility in Huntsville, Alabama. Raytheon produces SM-2 in Tucson, and SM-3 and SM-6 in Huntsville.
Raytheon Company, with 2019 sales of $29 billion and 70,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 98 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I® products and services, sensing, effects, and mission support for customers in more than 80 countries. Raytheon is headquartered in Waltham, Massachusetts.