Raytheon Wins Contracts for Missiles ... and Missile Defense

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.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2543045, ~/Articles/ArticleHandler.aspx, 8/27/2016 4:47:26 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 19 hours ago Sponsored by:
DOW 18,395.40 -53.01 -0.29%
S&P 500 2,169.04 -3.43 -0.16%
NASD 5,218.92 6.71 0.13%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/26/2016 4:02 PM
RTN $140.92 Down -0.86 -0.61%
Raytheon CAPS Rating: ****
LMT $244.44 Down -4.09 -1.65%
Lockheed Martin CAPS Rating: ****