The Missile Defense Agency has awarded Raytheon a $241 million contract modification for continued engineering design and development work on the Standard Missile-3 Block IIA.

The SM-3 Block IIA is a co-development effort between the U.S. and Japan and the cornerstone of phase three of the administration's Phased Adaptive Approach.

The SM-3 Block IIA's larger rocket motors and advanced kinetic warhead will allow for a greater defended area, protecting both the U.S. and its allies from ballistic missiles.

"The co-development of the SM-3 Block IIA with our Japanese allies continues to be an industry-leading example of global partnership," said Wes Kremer, vice president of Raytheon Missile Systems' Air and Missile Defense Systems product line.

"The SM-3 Block IIA is on track for a 2018 deployment."

SM-3 is being developed as part of the Missile Defense Agency's sea-based Aegis Ballistic Missile Defense System.

The missiles are deployed on Aegis cruisers and destroyers to defend against short- to intermediate-range ballistic missile threats in the midcourse phase of flight.

Raytheon has delivered more than 130 SM-3s to U.S. and Japanese navies ahead of schedule and under cost.