When the Department of Defense announced its contract awards for Aug. 6, the total funds handed out added up to $518.8 million -- but one single company walked away with more than half the funds on offer: Raytheon (NYSE:RTN).

Raytheon claimed its loot in the form of two contracts to perform work for the U.S. Missile Defense Agency, namely:

  • $218.5 million: exercising an option under a sole-source, cost-plus-incentive-fee contract to fund the purchase of materials, and integrate same into the manufacture of "up to" 29 All Up Rounds SM-3 Block IB missiles. SM-3IB is a new version of Raytheon's venerable Standard surface-to-air missile, which aims to enhance the original's effectiveness with enhanced, two-color infrared target seeking, and the use of short bursts of precision propulsion to steer the missile toward incoming targets. Raytheon's SM-3IBs are scheduled to begin deployment in 2015. The current contract, now worth $398 million in total, is expected to run through Sept. 30, 2016.
  • $49.9 million: exercising an option under a different sole-source cost-plus-incentive-fee contract to manufacture four All Up Rounds SM-3 Block IB missiles. These missiles are deliverable on or before Sept. 30, 2015.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of 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.