US Army awards $904 million contract to Raytheon for next-generation missile defense radar
News, US April 18, 2026 Comments Off on US Army awards $904 million contract to Raytheon for next-generation missile defense radar3 minute read
The U.S. Army has awarded a $904.6 million contract modification to Raytheon Technologies to support the low-rate initial production of its next-generation missile defense radar system.
The contract covers the production of five Lower Tier Air and Missile Defense System units, along with six additional spare systems. It also includes associated hardware, software, services, and production documentation required for the program.
This latest modification brings the total contract value to approximately $5.36 billion, reflecting continued investment in modernizing U.S. air and missile defense capabilities.
The agreement builds on a broader framework established in 2024, initially valued at $2.1 billion. Since then, the U.S. Army has expanded the program through multiple additional orders.
These include a $1.02 billion purchase completed earlier and another $1.7 billion agreement in 2025. With the latest $904.6 million award, the total program value has now reached more than $5.3 billion.
Only one bid was received for the latest contract, which was solicited online. At the time of the award, $725.9 million in Fiscal Year 2026 Army missile procurement funds were obligated.
Production and Timeline
All work under the contract will be carried out at Raytheon’s facility in Andover. The project is expected to continue through August 29, 2031.
Oversight of the contract will be handled by the U.S. Army Contracting Command based at Redstone Arsenal. The Lower Tier Air and Missile Defense Sensor, known as LTAMDS, is a key component of the Army’s plan to upgrade its air defense systems.
The radar was first conceptualized in 2017 to replace older sensors used in the Patriot missile defense system. LTAMDS provides full 360-degree coverage, allowing it to detect and track threats from all directions.
It is designed to engage multiple targets at the same time and can track high-speed threats traveling at speeds up to Mach 5. This capability is considered critical in responding to modern threats, including advanced missiles and fast-moving airborne systems.
Industrial Expansion and Partnerships
To support the growing demand for the LTAMDS system, Raytheon has expanded its production capacity in recent years.
In October 2025, the company invested $53 million to expand its production line in Andover. The expansion was aimed at increasing manufacturing capacity as international interest in the system continues to rise.
Earlier this year, Raytheon also partnered with TTM Technologies to support key components of the system.
The partnership focuses on radio frequency systems, electronics, and circuit development. These efforts are part of a broader push to strengthen the industrial base behind advanced defense systems.
In a separate development, the U.S. Army also awarded a contract to Conco Inc. valued at $24.5 million. The contract covers the production of M548 metal ammunition containers for the period between 2025 and 2029.
The agreement is structured as a firm-fixed-price contract with economic price adjustments. Three bids were received for this project.
Work locations and funding allocations will be determined with each order. The project is expected to be completed by April 15, 2031. The Army Contracting Command at Rock Island will oversee this contract.
Both contracts highlight the U.S. Army’s continued focus on modernizing its defense systems and strengthening supply chains. The LTAMDS program represents a significant upgrade in radar capability, designed to address evolving threats in modern warfare.
At the same time, supporting contracts such as ammunition container production ensure that logistical and operational needs are met alongside technological advancements.
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