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Defence contracts

Air Force Awards $2 Billion Contract for Long Range Standoff (LRSO) Weapon to Raytheon Missiles and Defense

Strategic Insights

— 1 min read

The U.S. Air Force has awarded a $2 billion contract to Raytheon Missiles and Defense for the Engineering and Manufacturing Development (EMD) of the Long Range Standoff (LRSO) weapon, a replacement for the aging AGM-86B Air Launched Cruise Missile. The contract, a sole-source acquisition, is valued at about $2 billion and is expected to be completed in February 2027. The LRSO is a critical component of the Air Force's nuclear deterrent, and its development is crucial to addressing emerging anti-access/area-denial threats.

Key Takeaways:

  • The contract is a sole-source acquisition, indicating that the Air Force determined Raytheon Missiles and Defense provided the best overall value to the warfighter and taxpayers.
  • The LRSO program office has implemented a pioneering reliability and manufacturing approach to establish a capable and mature design during the Technology Maturation and Risk Reduction phase.
  • The EMD contract marks a significant milestone in the LRSO program, with the Air Force Nuclear Weapons Center incorporating EMD data to inform weapon production negotiations.
  • The LRSO program office is part of AFNWC's Air Delivered Capabilities Directorate at Eglin AFB, Florida, and is responsible for synchronizing all aspects of nuclear materiel management.
  • Maj. Gen. Anthony W. Genatempo, AFNWC commander and Air Force program executive officer for strategic systems, emphasized the team's approach to providing the best overall value to the warfighter and taxpayers.
  • Elizabeth T. Thorn, LRSO program manager, highlighted the team's efforts to ensure a stable cruise missile design meeting the nation's requirement for a credible air-delivered nuclear deterrent.

Statistics:

  • The contract is valued at approximately $2 billion.
  • The length of the contract is 66 months, with expected completion in February 2027.
  • The LRSO program office has been working on the LRSO program for nearly three years.
  • The AGM-86B Air Launched Cruise Missile has a design life of 10 years, which has been exceeded since its fielding in the early 1980s.
  • The LRSO program office has implemented a cost-plus-fixed-fee contract with performance incentives.

Sources:

  • Leah Bryant, AFNWC Public Affairs, Air Force Nuclear Weapons Center
  • Maj. Gen. Anthony W. Genatempo, AFNWC commander and Air Force program executive officer for strategic systems
  • Elizabeth T. Thorn, LRSO program manager

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