Raytheon Granted $365 Million Navy Contract

Raytheon Company RTN revealed Friday it was granted a $365.85 million fixed-price-incentive, cost-plus-fixed-fee contract. According to the company, it was for the production of Aegis Weapon System AN/SPY-1D(V) Radar Transmitter Group, Missile Fire Control System MK 99 equipment, and associated engineering services.

Raytheon said the contract included options which, if exercised, would bring the cumulative value of it to $423.05 million. The company added this contract integrated the purchases for the American Navy and the governments of the Republic of Korea and Japan under the Foreign Military Sales program. The company indicated that this contract was previously announced by the Department of Defense on May 27.

The company stated work would be performed in Andover, Massachusetts (78.3 percent); Marlborough, Massachusetts (19.3 percent); Waterloo, Ontario, Canada (1 percent); Moorestown, New Jersey (0.9 percent); and Chesapeake, Virginia (0.5 percent), and is expected to be completed before October 2022.

The Defense equipment maker said this contract was not competitively procured in accordance with 10 U.S. Code 2304 (c)(4). The Naval Sea Systems Command, Washington, District of Columbia, was the contracting activity.

Shares of the company traded 0.83 percent higher on Friday.