Raytheon Wins Potential $1.6 Billion Navy Radar Contract

In the midst of a government shutdown that's closed off the spigot of most defense contract announcements for 11 days and counting, defense contractor Raytheon (NYSE: RTN  ) just announced a contract win from the Pentagon -- and it's a big one.

Thursday evening, Raytheon confirmed that it has won the Navy's competition for the right to build a next-generation Air and Missile Defense S-Band Radar (AMDR-S) and Radar Suite Controller (RSC), both of which will be installed as upgrades to Flight III Arleigh Burke-class (DDG 51) guided missile destroyers beginning in 2016.

Consisting of an S-band radar, an X-band radar, and a Radar Suite Controller to manage them, they will be used to detect long-range threats from hostile aircraft and missiles, and will be integrated into the ships' Aegis combat systems.

Valued at $385.7 million initially, Raytheon's new contract contains options to extend it and build new systems. If exercised in full, these options could raise the total value of Raytheon's new defense contract past $1.6 billion, the company said. Raytheon's win marks a loss for rival Northrop Grumman, which had bid against Raytheon on the contract, and an even bigger loss for Lockheed Martin, which not only competed to build the AMDR-S, but is the incumbent provider on the system AMDR-S will replace, the AN/SPY-1 naval radar system.

link


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.

DocumentId: 2679130, ~/Articles/ArticleHandler.aspx, 7/23/2014 1:09:31 AM

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...


Advertisement