Raytheon Captures $469 Million in Pentagon Contracts
On a day in which the Department of Defense awarded 29 separate defense contracts, Raytheon came away the big winner Friday, winning no fewer than six separate awards -- and more than half the funds on offer, $469.2 million in all.
Raytheon's big win of the day was a $275.4 million contract modification to supply the U.S. Navy with an unspecified number of Standard Missile 6 (SM-6) all-up rounds (AUR refers to live-fire rounds, completely assembled and lacking only wings and fins for guidance), plus an unspecified number of spare SM-6 and Standard Missile 2 (SM-2) rounds, and containers therefor. Delivery is due March 2017.
Additionally, Raytheon won:
- An $80.8 million contract to supply 200 Lot 7 Miniature Air-Launched Decoy Jammer (MALD-J) missiles to the U.S. Air Force by June 30, 2016. Missile-derived drones, the MALD-J has two functions: First, it mimics the radar signature of a full-sized combat aircraft to fool hostile radar operators. Second, the -J variant also carries electronic warfare equipment to jam hostile radar signatures, adding to confusion among opposing forces.
- A $51.8 million contract modification exercising an option to have Raytheon supply the U.S. Army with 757 Excalibur 155mm increment lb precision projectiles by Feb. 29, 2016. This is the second largest order the Army has ever placed for Excalibur rounds. (The largest, an order placed last August for 765 rounds, was itself a purchase of more Excalibur rounds than the Army has ever fired.) The per-unit cost of these rounds appears to be declining. Last year, each round cost more than $70,000. Last week's order bore a sticker price of just $68,428 per round.
- A $33.2 million contract modification funding R&D activities, and also the fabrication and testing of prototype integrated power systems power load modules to power new electromagnetic railguns being developed by the U.S. Navy. This contract will run through December 2016.
- A $19.7 million contract modification to supply the U.S. Navy with Multi-Spectral Targeting Systems (MTS-C) spares for use aboard Navy special projects aircraft. The MTS-C is described as being an airborne, electro-optic, forward-looking, infra-red, turreted sensor system for long-range surveillance. Delivery is due May 2016.
- An $8.3 million foreign military sales contract to maintain and support Norwegian Advanced Surface to Air Missile Systems through at least June 27, 2014. This foreign military sales contract has the potential to be extended by as much as four years after the initial one-year term expires, and so could rise in value over time.
The article Raytheon Captures $469 Million in Pentagon Contracts originally appeared on Fool.com.Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Raytheon Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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