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TUCSON (BNS): Raytheon has received a contract from the US Navy to produce Rolling Airframe Missile Block 2 systems.

The contract, worth $51.7 million, makes provision for low rate initial production of the advanced missiles. It includes options, which, if exercised, would bring the cumulative value of the contract to more than $105 million, Raytheon said.

RAM Block 2 features enhanced kinematics, an evolved radio frequency receiver, a new rocket motor, and an upgraded control and autopilot system.

"This next-generation RAM will enable US and allied naval warfighters to defeat the more sophisticated threats emerging around the world today," Rick Nelson, Raytheon Missile Systems' vice president of Naval Weapon Systems, said.

The contract award follows a series of key milestones, including successful guided flight tests for RAM Block 2.

The programme is preparing for another intercept test later this year, as well as initiation of government developmental testing in support of fleet deployment, the company said.