RTX lands $22.9 billion Navy contract to accelerate Tomahawk production

(Raytheon, 256 Today)

The Department of War has awarded Raytheon a $22.9 billion U.S. Navy contract to dramatically accelerate production of Tomahawk cruise missiles. RTX’s Huntsville operations are part of the company’s broader effort to expand U.S. missile production and integration capacity. 

The award, announced Monday, is aimed at expanding production of the long-range precision-strike weapon while giving RTX the stability to grow its workforce, increase manufacturing capacity and strengthen its supply chain.

“The Department called upon industry to expand munitions production, and RTX has answered that call,” Under Secretary of War for Acquisition and Sustainment Michael P. Duffey said. “This Tomahawk award increases our ability to equip the Joint Force, ensuring our Warfighters never face a fair fight.”

The massive contract follows an agreement announced earlier this year under which Raytheon committed to increasing annual Tomahawk production to more than 1,000 missiles. RTX said production associated with those broader munitions agreements will take place at Raytheon facilities in Huntsville, Tucson, Arizona, and Andover, Massachusetts.

Tomahawk is a precision cruise missile capable of being launched from ships and submarines and striking targets from approximately 1,000 miles away, including in heavily defended airspace. According to RTX, Tomahawks have been flight tested more than 550 times and used operationally more than 2,300 times.

“Guaranteeing our naval and joint forces have the lethal firepower they need to deter aggression and protect the homeland is paramount,” Acting Secretary of the Navy Hung Cao said. “This landmark $22.9 billion investment will accelerate Tomahawk missile delivery to our warfighters at unprecedented speed.”

The award also comes as Raytheon continues a major expansion of its missile production capabilities in Huntsville.

In March, the company completed a $115 million, 26,000-square-foot expansion of its Redstone Raytheon Missile Integration Facility, increasing the facility’s missile integration and delivery capacity by more than 50%. RTX’s Alabama workforce has grown to more than 2,200 employees.

The Redstone facility, which opened in 2012, serves as a major missile production and integration hub and handles nine variants of the Standard Missile family, including SM-3 and SM-6 interceptors.

The Department of War said the Tomahawk contract is part of a broader effort to reduce procurement lead times and get critical weapons to the military faster, while creating the long-term demand industry needs to invest in additional production capacity.

Portfolio Acquisition Executive Munitions, a Department of the Navy organization responsible for developing, procuring and delivering naval munitions and strike capabilities, is overseeing the effort.

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