On Friday, the U.S. Department of Defense announced it has awarded Raytheon (NYSE:RTN) a contract modification to its previously awarded fixed-price incentive, cost-plus-fixed-fee contract to install mission systems equipment on the ultramodern Zumwalt-class destroyers DDG 1000 and DDG 1001 (the USS Zumwalt and the USS Michael Monsoor, respectively), as well as "non-hatchable mission systems equipment" on a planned DDG 1002 -- the USS Lyndon B. Johnson.
At present, only three destroyers are anticipated to be built in the Zumwalt line, ultimately costing taxpayers some $3.3 billion apiece. The current Raytheon contract, however, is "not to exceed" $169 million in value. The ships themselves are being built by defense contractors General Dynamics (NYSE:GD) and Huntington Ingalls (NYSE:HII).
Raytheon shares closed down 1% Friday, ahead of the announcement, at $56.70.
Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of General Dynamics, Huntington Ingalls Industries, and Raytheon. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.