Reviewed by: Caleb Turrentine
Raytheon + Northrop Grumman land new defense contracts
Reading time: 3 minutes
Defense contractors Raytheon and Northrop Grumman—both with significant operations in Huntsville—have each landed significant contracts from the Department of War in October.
On October 8, 2026, Raytheon announced a new government contract valued up to $6.3 billion, while Northrop Grumman landed a $21 million contract, announced October 13, 2026.
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What are these new defense contracts for?
Raytheon’s $6.3 billion contract
Raytheon’s contract—a five-year contract, with two additional option years—is for the production and sustainment of Standard Missile-3 Block IB (SM‑3 IB) interceptors.
SM‑3 IB is a ship-based and land‑based missile defense interceptor designed to defeat intermediate‑range ballistic missiles during the midcourse phase of flight.
It was first used in combat in 2024 and is an integral part of the U.S. Navy’s extended-range integrated air and missile defense together with SM-3 IIA and the rest of the Standard Missile family.
This is part of Raytheon’s recent landmark agreements with the Department of War, supporting urgent replenishment of missile defense inventory. Production under this contract will be primarily completed at Raytheon facilities in Tucson and Huntsville.
“This award underscores Raytheon’s commitment to increasing production of critical munitions, ensuring our customers have the defensive capabilities they need, when they need them.
SM-3 Block IB has proven its relevance in combat and this contract helps ensure we can replenish inventories and keep pace with the evolving threats the U.S. Navy, MDA and their partners face around the world.”
Phil Jasper, president, Raytheon
Northrop Grumman’s $21 million contract
The U.S. Army has selected Northrop Grumman to further expand the Integrated Battle Command System (IBCS) with a new variant designed to increase the system’s survivability and mobility.
In essence, soldiers are trading a tent for a tougher, expandable van that’s easier to move and protect.
Northrop Grumman is under contract to provide two manufacturing prototypes to the Army by June 2027, with the bulk of this work happening in Huntsville.
“By boosting the Integrated Collaborative Environment’s survivability and mobility, we’re giving warfighters greater protection and faster access to advanced command and control technology as they face increasingly complex and dynamic battlespaces.”
Kenn Todorov, vice president and general manager, command and control and weapons integration, Northrop Grumman
According to information provided by Northrop Grumman, the firm will deliver prototypes for a modified IBCS Integrated Collaborative Environment providing an enlarged, configurable workspace.
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