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Raytheon Lands $255M Contract for Work on Destroyer Ship

By Jake Meister | January 4, 2016

Raytheon was the big winner of the United States Department of Defense’s (DoD) Thursday publication of military contracts, tallying three deals worth a combined $310.4 million.

The money brought in by Raytheon will be chiefly represented by a $255.2 million modification to a Navy contract given to its subsidiary Raytheon Integrated Defense Systems.

Under the agreement, Raytheon Integrated Defense Systems will provide mission system equipment benefitting the yet-to-be-completed USS Lyndon B. Johnson. The contract could be worth $349.2 million if associated options are exercised. Almost all of the work (98 percent) under the fixed-price-incentive firm target modification will be conducted at five locations throughout the U.S., with the remaining labor taking place in Canada. All of the labor should be finished by October 2019. None of the contract funds will expire at the end of the 2016 fiscal year.

Raytheon was given $42.2 million to exercise options under a Navy contract for engineering and technical support services benefitting the Phalanx, SeaRAM, and land-based Phalanx weapon systems.

According to the DoD, the Phalanx Close-In Weapon System is an automatic terminal defense weapon system built to spot, track, and destroy anti-ship missile threats that have made it past other lines of defense. The engineering and technical support services are intended to provide increased reliability and other improvements for the weapon systems.

The U.S. government will benefit the most from the contract, as 62.7 percent of the purchases benefit America. Turkey (20.1 percent) and Australia (12.8 percent) will also be notable benefactors. Japan, Canada, the United Kingdom, Korea, Bahrain, Pakistan, and Egypt will benefit from a minuscule amount of the purchases. The work will be conducted throughout the U.S., with 60 percent of the work taking place in Tucson, Ariz. All of the work should be finished by October 2016. More than $15 million in fiscal 2013-2016 funding will be assigned at the time the cost-plus-fixed-fee contract is awarded.

Lastly, Raytheon was given nearly $13 million for the partial exercise of an option under an Army contract. Under the contract modification, Raytheon will provide services benefiting “program management electro-optic/infrared payloads – force protection family of systems.” The work, which includes program management, engineering, and logistic support, will be conducted in Woburn, Mass., and should be finished on June 30, 2016. Fiscal 2016 funds worth $4.5 million were assigned with the award.

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Filed Under: Aerospace + defense

 

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