Defense Department modifies contract for ballistic missiles

The modified contract award from Naval Sea Systems Command adjusted the total cumulative value of the deal to more than $44.8 million. The contract enables Raytheon to provide "long-lead material in support of fiscal 2017 Standard Missile-6 full-rate production requirements and spares," according to a Defense Department contract announcement Thursday.

The Raytheon-manufactured Standard Missile-6 is both an offensive and defensive long-range weapon system that is designed as a anti-air and surface warfare weapon, in addition to being capable of targeting incoming sea-based ballistic missiles.

The U.S. Navy typically arms both naval cruisers and destroyers as the Standard Missile-6 can integrate with the AEGIS missile defense system.

Work on the contract will occur in multiple locations across the United States and the United Kingdom and is expected to be complete in March 2020.

The total cumulative value of the contract will be obligated to Raytheon at time of award, the Pentagon press release said.

The obligated funds will be allocated from Navy fiscal 2017 weapons procurement funds that will not expire at the end of the current fiscal year in September.