Raytheon Bags $1 Billion from Ukraine Arms Deal

June 24th, 2023 - by Stephen Losey / Defense News

US escalates Ukraine war with weapons for air-to-air combat.

Ukraine to Get AMRAAM Weapons
Under $1 Billion Deal with RTX
Stephen Losey / Defense News

WASHINGTON (June 21, 2023) — The US Air Force has awarded a nearly $1.2 billion contract to the missiles and defense sector of RTX, until recently known as Raytheon Technologies, to produce the next lot of AIM-120 Advanced Medium Range Air-to-Air Missiles.

Part of the firm-fixed-price deal — the largest ever awarded for AMRAAM weapons — will cover missiles for sale to multiple foreign allies and partners, including Ukraine.

RTX will produce AMRAAM weapons, telemetry systems and spare parts in Tucson, Arizona, under the contract, as well as provide production engineering support, the Pentagon said in a statement announcing the deal. The company is expected to finish work on Lot 37 of the missiles by the end of January 2027.

RTX said in its own statement the contract will be for the D3 and C8 versions of the AMRAAM, which have the latest F3R — which stands for form, fit, function refresh — upgrades to its software and hardware. Those AMRAAMs also have improved circuit cards and other hardware in their guidance systems.

The Pentagon said about 39% of the value of the contract, or $449 million, will be for foreign military sales to 18 nations, including the United Kingdom, South Korea, Italy, Japan, Singapore, Saudi Arabia and Canada.

Ukraine fires AMRAAMs from its National Advanced Surface-to-Air Missile System batteries. The US Army in December 2022 awarded RTX another contract worth up to $1.2 billion to deliver six NASAM batteries to Ukraine.

While the latest contract was awarded by the US Air Force, the US Navy will provide more than $330 million in procurement funds and will receive some missiles from the lot. The Navy will also provide about $5 million in research and development funds.

The Air Force plans to spend more than $351 million in procurement funds on these missiles, as well as another $10 million for research and development, plus and $3.9 million in operation and maintenance funds.

RTX said this will mark the fifth production lot of the upgraded AMRAAMs.

Stephen Losey is the air warfare reporter for Defense News. He previously covered leadership and personnel issues at Air Force Times, and the Pentagon, special operations and air warfare at Military.com. He has traveled to the Middle East to cover US Air Force operations.

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