Pentagon announces the sale of SM-2 spare parts to five allied nations

Raytheon Company has received a $141 million modification to an existing contract for the provision of Standard Missile-2 (SM-2) production spares to important U.S. allies via the Foreign Military Sales (FMS) program. The Pentagon disclosed the contract details in a release that outlined the purchase distribution and production schedule.

As stated by the U.S. Department of Defense, this firm-fixed-price modification facilitates the acquisition of spare parts for the governments of Japan, Australia, the Netherlands, Spain, and Germany. Japan holds the largest portion at 57%, followed by Australia at 19%, the Netherlands at 13%, Spain at 6%, and Germany at 5%.

The Department of Defense indicated in its contract announcement that the work will take place at two U.S. locations—72% in East Camden, Arkansas, and 28% in Tucson, Arizona—with an expected completion date set for June 2030.

The SM-2 is a long-range surface-to-air missile designed for fleet area air defense and ship self-defense. Produced by Raytheon, it is engineered to intercept and neutralize aircraft and anti-ship missiles mid-flight, and it is widely utilized by both the U.S. Navy and allied naval forces.

This agreement was facilitated through the Naval Sea Systems Command in Washington, D.C., which manages the procurement and lifecycle support for naval weapon systems.

The SM-2 continues to be manufactured to fulfill the defense needs of both the U.S. and its international partners, especially in the Indo-Pacific and European regions, where maritime deterrence is a critical focus.