The Air Force yesterday awarded RTX subsidiary Raytheon a $234.8 million contract to transition an extended-range variant of the AIM-120 Advanced Medium Range Air-to-Air Missile into full-rate production, according to a contract notice.

“This award is critical for the AMRAAM-Extended Range variant because it transitions that program into full-rate production, which is a significant sign of confidence,” an RTX spokesperson told Inside Defense. “The designation of full-rate production of AMRAAM-ER shows that Raytheon can reliably and sustainably deliver the product at scale, providing savings for our customer and stability for our supply chain partners.”

AMRAAM-ER is a ground-launched version of the radar-guided, air-to-air missile that is typically integrated with aircraft like the F-35 Joint Strike Fighter or F/A-18E/F Super Hornet. In its extended-range configuration, the missile can “intercept targets at longer distances and higher altitudes,” Raytheon states on its website.

“The boost comes from a more powerful rocket motor and flight-control section,” the spokesperson said, adding that the ER variant increases AMRAAM’s range by around 50% and its altitude by about 70%.

Yesterday’s cost-plus-fixed-fee contract remains undefinitized, per the notice. Costs to transition into full-rate production, or the point at which the manufacturer can sustain long-term and large-scale production rates, may not exceed $234.8 million.

AMRAAM-ER missiles are currently integrated with the National Advanced Surface-to-Air Missile System for “increased air defense protection in the medium-range air defense market,” Raytheon writes on its website.

“It is one of the system’s three interceptors used to defend against airborne threats such as cruise missiles, aircraft and” unmanned aerial vehicles, the RTX spokesperson told Inside Defense.

Work regarding the contract is expected to be complete by April 13, 2030. The contract also includes foreign military sales to Hungary, Kuwait, Lithuania, Netherlands, Norway and Taiwan.

It comes as the Pentagon is moving to swiftly expand its stockpile of munitions and push the industrial base to double or triple manufacturing capacity.

Raytheon in February additionally revealed five framework deals with the Defense Department to significantly increase production capacity and accelerate deliveries of Tomahawk cruise missiles, AMRAAM, Standard Missile-3 Block IB and Block IIA interceptors and the SM-6 missile.

Under the up-to-seven-year agreements, RTX said annual output for the traditional AMRAAM variant will reach at least 1,900 missiles.

The Air Force’s procurement budget for missiles is projected to jump next year from $6.3 billion in fiscal year 2026 to a requested $11.4 billion in FY-27.