The U.S. Department of Defense has awarded Raytheon a $5.04 billion contract to supply the Army with its Coyote missile system, a counter-drone capability designed to intercept and neutralize unmanned aerial threats, including swarms.

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The Department announced that Raytheon, based in Tucson, Arizona, will deliver fixed and mobile Coyote launchers, kinetic and non-kinetic interceptors, and Ku-band radio frequency system radars. The total value of the agreement is $5,039,629,681.

The contract was competed online, with one proposal submitted. Work locations and funding allocations will be determined with each order. The Army Contracting Command at Redstone Arsenal, Alabama, is managing the program under contract number W31P4Q-25-D-0013. The estimated completion date is September 28, 2033.

The Coyote is a small, rail-launched missile powered by a rocket booster and turbine engine, capable of engaging high-speed targets at extended ranges and altitudes. It is designed to support both unmanned aircraft system (UAS) countermeasures and launched effects missions.

The system includes kinetic variants, which destroy targets through direct impact, and non-kinetic versions, which use electronic or other means to disable hostile drones without physical collision.

According to the Pentagon, the system has already been deployed in operational environments and forms part of broader efforts to develop layered defenses against aerial threats. Its extended range and altitude performance are intended to provide commanders with greater flexibility in counter-drone operations.