NEWTOWN, Conn. -- On June 27, 2022, the Naval Air Systems Command (Patuxent River, MD) awarded Raytheon Missiles and Defense (Tucson, AZ) a $29,351,041 firm-fixed-price order (N0001922F2533) against a previously issued basic ordering agreement (N0001920G0007). This order updates the technical data package and software for the Joint Standoff Weapon AGM-154C (Block III) for the governments of Taiwan, Bahrain, and Canada.
Work will be performed in Tucson, Arizona (90%); Goleta, California (6%); McAlester, Oklahoma (3%); and various locations within the continental U.S. (1%), and is expected to be completed in July 2025. Foreign Military Sales funds in the amount of $29,351,041 will be obligated at time of award, none of which will expire at the end of the fiscal year.
The Forecast International Weapons Group estimates that Raytheon has thus far delivered at least 7,623 AGM-154 Joint Stand-Off Weapons. Beyond U.S. Department of Defense procurement, the weapon system has established an export customer base as well.
The U.S. Navy has been the primary customer for the JSOW. However, Navy budget request documentation indicates no current funding for the program.
U.S. procurement has been focused on the AGM-154C, for a Navy procurement objective of 7,000 weapons. The U.S. Air Force turned its back on the JSOW in 2005. While there is a small chance that this decision will be reversed, any order placed by the Air Force would not be substantial.
The AGM-154B version of the JSOW will remain in limbo until the U.S. Navy decides whether it will ever place an order.
While demand from the Navy has been the driving force behind the JSOW program, export orders represent an increasing share of production. Australia, Finland, Greece, Poland, Saudi Arabia, Singapore, and Turkey are export customers for the JSOW. And India could receive this weapon via the purchase of U.S.-built combat aircraft.
In October 2017, Qatar placed an order worth $172.9 million for 200 AGM-154C Block III JSOWs. Contract work was expected to be completed by June 2020.
In December 2017, Saudi Arabia placed an order worth $302.4 million for 618 AGM-154C Block III JSOWs. Contract work is expected to be completed by June 2022.
We expect that export sales of the JSOW will sustain production, whether or not the U.S. Navy resumes procurement.