The U.S. Department of Defense awarded Raytheon (NYSE: RTN ) a pair of contracts Wednesday -- one big, one small.
The big one -- in fact, the biggest contract the Pentagon awarded to anyone Wednesday -- is worth $83.8 million to Raytheon. A sole-source, cost-plus-incentive-fee, and cost-plus-fixed-fee foreign military sales contract modification, it hires Raytheon to perform software updates, radar repairs, logistics, and other work on AN/TPY-2 radars being provided to the government of the United Arab Emirates for use as part of Lockheed Martin's (NYSE: LMT ) new Terminal High Altitude Area Defense, or THAAD, system.
Lockheed Martin won the $2 billion contract to build a THAAD system for the UAE in 2011. Raytheon will be working on this contract through Sept. 30, 2018.
The smaller award, worth $19.1 million to Raytheon, hires the company to provide engineering and technical services to the U.S. Navy, other U.S. government agencies, and also foreign governments -- all related to Raytheon's Standard Missiles, models 2, 3, and 6. Foreign governments for which Raytheon will be doing work under this contract include Japan, Australia, South Korea, Germany, the Netherlands, Taiwan, Canada, and Spain. Work on this contract should be completed by next July.