Pentagon awards $5 billion contract to Raytheon for Coyote Missile System

The U.S. Department of Defence announced on September 29 that it has awarded Raytheon Co. a $5.04 billion contract for the Coyote Missile System.

According to American media, the award covers a comprehensive missile defence package, including both fixed and mobile launchers, kinetic and non-kinetic interceptors, and Ku-band radio frequency radar systems.

The cost-plus-fixed-fee contract followed an internet solicitation that received only a single bid. The Army Contracting Command at Redstone Arsenal, Alabama, will manage the contract, with work expected to continue through September 28, 2033.

This major defence contract is a key component of President Donald Trump’s broader missile defence strategy, coinciding with an unprecedented expansion of the Pentagon budget. The award aligns with the administration’s pursuit of a $1.01 trillion national defence budget for fiscal year 2026—a 13.4 per cent increase, emphasising missile defence, homeland security, and deterrence in the Indo-Pacific region.

The budget also reflects a broader shift in federal spending priorities, with substantial increases in defence funding balanced by cuts to non-defence discretionary programs.

The $5.04 billion Coyote Missile System contract includes multiple integrated components designed to provide full-spectrum missile defence capabilities. The system features both fixed installations and mobile launchers, offering flexibility in deployment. Its interceptors include kinetic options that physically destroy incoming targets, as well as non-kinetic alternatives capable of neutralising threats through other means. Ku-band radio frequency radar systems supply critical detection and tracking functionality for the system. Work locations and specific funding allocations will be determined through individual task orders over the eight-year contract period.

This contract is part of the fiscal year 2026 defence budget’s $25 billion allocation for the “Golden Dome for America” comprehensive missile defence initiative.

The broader Pentagon budget includes $197.4 billion for the Army, $292.2 billion for the Navy, $301.1 billion for the Air Force, and $170.9 billion for defence-wide programs. Other priorities outlined in the budget include $60 billion for nuclear enterprise modernisation, $15.1 billion for cybersecurity, and $6.5 billion for conventional munitions.

The Coyote Missile System program will advance through individual task orders issued over the next eight years, with specific work locations and funding determined incrementally.

By Tamilla Hasanova