Missile Defense Agency Extends Raytheon's Nearly $3B AN/TPY-2 Radar Deal to 2028 as Iran War Strains THAAD Fleet

The Missile Defense Agency extended Raytheon's AN/TPY-2 radar operations and sustainment agreement by two years, taking its ordering period through October 31, 2028. The noncompetitive modification raises the ceiling of an existing indefinite-delivery contract from $2.605 billion to $2.999 billion, an increase of $394 million rather than a new $3 billion award. Raytheon will support radar sites in the United States and overseas, including equipment used in ballistic-missile detection and THAAD operations. Approximately $112.3 million in fiscal 2027 funds was obligated through associated task-order modifications at the time of the extension.