Tucson-based Raytheon Missile Systems has been awarded a $303.7 million contract by the U.S. Navy to produce 214 Tomahawk Block IV cruise missiles and spares for the U.S. Navy and the United Kingdom.
About a quarter of the work is to be performed in Tucson and is expected to be completed in August 2018, the Pentagon said in a contract notice.
The contract combines a $301 million purchase by the Navy and a $2.8 million procurement by the U.K. under the Foreign Military Sales program, the Defense Department said.
The Pentagon two years ago proposed bringing production of the long-range Tomahawk to a halt, citing a large inventory of the missiles. The latest Tomahawks cost about $1.5 million each and are used against high-value targets.
But Congress funded continued production, and Tomahawks have since been used in the fight against Islamic State militants in the Iraq and Syria.