On Thursday, the U.S. Department of Defense's daily update on new defense contracts named Raytheon (NYSE:RTN) as a particularly big winner.
Raytheon won at least three new contracts from the U.S. Navy:
- A firm-fixed-price, multiyear contract covering fiscal years 2013 through 2015 to produce Evolved Seasparrow missiles for the Navy, and also for the governments of U.S. allies Australia, Denmark, Canada, Germany, Norway, Greece, the Netherlands, Spain, Turkey, Japan, and Thailand. The contract is said to be worth $226.8 million at a minimum, and potentially as much as $259.9 million if all options for additional production are exercised.
- A cost-plus-fixed-fee contract to support the Evolved Seasparrow Missile Design Agent in calendar year 2013, worth $140 million, or as much as $237 million if all options are exercised, for the same customers.
- And finally, a contract modification not to exceed $26.6 million in value, unrelated to the Seasparrow work, to develop and execute phase II of a dual-band radar test and evaluation on Navy ship CVN 78, the USS Gerald R. Ford.
In all, the three contracts add up to potentially as much as $523.5 million in work.