≈$2.76B Defense-wide DEFINITIVE CONTRACT HQ027615C0003

An outlay ratio of 21.5 percent, the highest in these records — a development contract rather than production

Defense Contract Management Agency 2015-07-22 〜 2025-12-31

A Raytheon contract administered by the Defense Contract Management Agency with an obligated value of about $2.763 billion and total outlays of about $594.9 million — a ratio of 21.5 percent, among the highest in the records this site holds as of 2026-09-02. The description names RDT&E, research, development, test and evaluation, showing it sits at the development stage rather than production.

Contract key facts

  • RecipientRTX (Raytheon)
  • Contract value$2,762,914,390 (≈$2.76B)
  • BranchDefense-wide
  • Awarding agencyDepartment of Defense
  • Awarding sub-agencyDefense Contract Management Agency
  • Award typeDEFINITIVE CONTRACT
  • Period of performance2015-07-22 〜 2025-12-31
  • Contract ID (PIID)HQ027615C0003

Contract scope (original)

SM-3 BLK IIA RDT&E GUIDED MISSILE ROUNDS

Key points

  • Obligated value is about $2.763 billion and total outlays about $594.9 million — a ratio of 21.5 percent, among the highest in these records.
  • The description reads SM-3 BLK IIA RDT&E GUIDED MISSILE ROUNDS, showing the development stage.
  • Development generates expense every year as labour and testing, while production may see no outlay until delivery.
  • Of the 207 records this site holds as of 2026-09-02, 115 (56 percent) show zero outlays; the 92 with outlays have a median ratio of 1 percent.
  • The awarding component is the Defense Contract Management Agency, appearing on 43 records, second only to the Navy 77.

1What distinguishes contracts where outlays have moved

Among the defense contracts this site holds, the ratio of outlays to obligation is normally extremely low. This contract stands at 21.5 percent, among the highest in the set. RDT&E in the description — research, development, test and evaluation — gives a handle on why.

2Development against production

Research, development, test and evaluationProduction
Cost of design, prototyping and testingCost of manufacturing finished articles
Flows out year by year as labour and test expensePaid against completion of delivery
Outlays accumulate steadilyOutlays may not arise until delivery

At the development stage, engineer labour, running tests and building prototypes generate expense every year. At the production stage, payment often arises only once finished articles are delivered, so outlays do not accumulate between award and delivery.

The same defense contract shows outlays differently depending on the stage, and this contract high ratio is consistent with that difference — though the record states no reason, so this is not something readable directly from it.

3Placing the figures

Obligated value of this contractAbout $2.763 billionAbout 10.4 years from July 2015 to December 2025
Total outlays on the recordAbout $594.9 millionA ratio of 21.5 percent against obligation
Contracts with zero outlays among the 207 this site holds as of 2026-09-02115The 92 with outlays have a median ratio of 1 percent and a maximum of 32.6

The period of 10.4 years nearly matches the 10.7-year median across the records at that date. A contract at the development stage running ten years is not unusual, reflecting a process that feeds test results back into design.

4The Defense Contract Management Agency as awarding component

The awarding component field reads Defense Contract Management Agency, the organization responsible for administering contracts and overseeing performance. Among the records this site holds it appears on 43, second only to the Navy 77. It appears often on contracts whose branch field reads defense-wide, and the distribution suggests it administers cross-cutting procurement not belonging to a single service.

Why it matters

Development and production stages show outlays differently even within defense contracting. The ratio of outlays to obligation offers a handle for inferring which stage a contract sits at.

FAQ

What data is this?
A single Department of Defense (DoD) federal procurement contract recorded in "USAspending," the U.S. open government-spending dataset. The recipient, awarding component, value, and scope are public. This site is not an official U.S. government website.
What is RDT&E?
Research, development, test and evaluation — the stage of design, prototyping and testing. Its cost behaves differently from production, which manufactures finished articles.
Is the amount final?
It is a cumulative figure as of collection. Large defense contracts accumulate modifications over many years, so amounts change. The latest figure is available at the source, USAspending.

Sources (primary)

This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.

#Defense contracts#Missile defense#Raytheon#Research and development#Outlay ratio
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