The Missile Defense Agency awarded Raytheon a $350 million contract to increase its procurement of Standard Missile-3 Block IB missiles from 8 to 44.

The SM-3 is designed to destroy incoming short-, medium-, and intermediate-range ballistic missile threats by colliding with them in space, a concept sometimes described as "hitting a bullet with a bullet."

The work will be performed in Tucson, Ariz., and Huntsville, Ala., through September 2016.

Standard Missile-3 2013 Year-in-Review:

• February 2014: SM-3 Block IA destroys medium-range ballistic missile target using remote satellite cue
• March 2014: Raytheon's dual-band data link tested with Thales radar
• May 2014: SM-3 Block IB destroys complex, separating short-range ballistic missile target
• June 2014: Raytheon delivers first SM-3 from its new Alabama missile integration facility
• September 2014:  SM-3 Block IA destroys medium-range ballistic missile target during operational test
• September 2014: US Navy launches two SM-3 Block IBs against single ballistic missile target; target destroyed 
• October 2014: SM-3 Block IB destroys medium range ballistic missile target; completes initial operational testing 
• October 2014: SM-3 Block IIA completes critical design review; program moves from design to build