Raytheon, Aerojet Rocketdyne Reach New Tactical Sourcing Agreement

Raytheon Company

and Aerojet Rocketdyne, a unit of Aerojet Rocketdyne Holdings, Inc.

, have reached a fresh Strategic Sourcing Agreement. The company said that under the SSA, Aerojet Rocketdyne would act as a principal and long-term supplier of its legacy portfolio of propulsion systems and energetics products for key weapons programs. Raytheon's Missile Systems President, Taylor Lawrence, said, "This landmark agreement is an important step forward in collaboration between industry partners and the U.S. Government to achieve the objectives of Better Buying Power 3.0. To realize the benefits of this agreement, industry and the U.S. Government must alter their historic way of doing business – that will result in significant taxpayer savings." The companies indicated that they would pursue affordability initiatives as part of the agreement until the year 2019. Aerojet Rocketdyne CEO and President, Eileen Drake, also commented, "We are Raytheon's partner on some of the most important propulsion systems for our nation's warfighters and national defense programs. This agreement expands our long-term relationship with Raytheon and is a direct result of our commitment to deliver quality products on schedule, while remaining firmly focused on affordability." The two companies said that in 2015, Raytheon presented Aerojet Rocketdyne with an Award for Excellence in Affordability during a supplier conference in Boston, Massachusetts. While RTN traded 0.39 percent higher, AJRD traded 0.67 percent up on Tuesday.