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Raytheon Awarded $2 Billion Contract for Manufacturing Development of Long Range Standoff (LRSO)

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Raytheon Awarded $2 Billion Contract for Manufacturing Development of Long Range Standoff (LRSO)

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AGM-181 Long Range Stand Off Weapon (LRSO)
AGM-181 Long Range Stand Off Weapon (LRSO)

Raytheon Missiles and Defense, Tucson, Arizona, has been awarded an approximately $2,000,000,000 (to include all options) cost-plus-fixed-fee with performance incentives contract for the engineering and manufacturing development (EMD) phase of the Long Range Standoff (LRSO) Weapon System. During the EMD phase, manufacturing processes will continue to mature and the manufacturing environment will be demonstrated and transitioned to a pilot line readiness state. The objective at the end of EMD is to demonstrate full production readiness. Work will be performed in Tucson, Arizona, and is expected to be completed February 2027. Air Force Nuclear Weapons Center, Eglin Air Force Base, Florida, is the contracting activity.

The AGM-181 Long Range Stand Off Weapon (LRSO) is a nuclear-armed air-launched cruise missile under development by Raytheon Technologies. The LRSO is slated to replace the nuclear AGM-86B Air-Launched Cruise Missile beginning in about 2030, equipping the B-52 and B-21 bombers as one-third of the nuclear triad. Its range is expected to be in excess of 1,500 miles, and first flight could come in 2022. The Air Force’s 2022 budget request included $609 million for the program. The Congressional Budget Office estimated in 2017 that the LRSO will cost $10 billion to produce 1,000 missiles, for a unit cost of $10 million apiece, but the Arms Control Association has estimated the cost could be closer to $20 billion.

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