The Department of Defense announced 37 new defense contracts Friday, worth a combined $2.2 billion in total value. One of the biggest winners of the day was Raytheon (NYSE:RTN), winning five of the contracts on offer for a combined $122.3 million.
Its biggest win of the day was for $80.5 million in an option exercise to supply the U.S. Navy with 200 Full-Rate Production Lot 10 AGM-154C-1 unitary Joint Stand-Off Weapons (JSOW), including associated support equipment, by August 2016. Raytheon will also supply a single AGM-154C-1 JSOW for use in a performance characterization test. Essentially a "smart" bomb, once deployed in the air, the 1000-pound JSOW glides as far as 78 miles to hit its target, guiding itself en route with GPS signals.
Additionally, Raytheon won contracts for:
- $12.9 million in an option exercise to work on the cooperative engagement capability, or CEC, for the U.S. Navy's AN/USG-2B Shipboard System and three planar array antenna assembly systems. CEC is a sensor "netting" system that collects electronics data gathered by ship sensors and distributes it among the fleet, improving overall situational awareness and enabling longer range, cooperative, multiple, or layered engagement strategies. Raytheon's work on this contract will now continue into September 2014.
- $9 million as a contract modification funding high definition retrofits on Navy AN/AAS-53 common sensor payloads. These retrofits can be installed on both manned aircraft and unmanned aerial vehicles, and provide day/night imaging and laser designator capabilities for use in reconnaissance, intelligence, surveillance, target acquisition, and target designation. Raytheon's work on the project will continue into March 2016.
- Up to $8 million in a sole-source, firm-fixed-price contract to support advanced targeting systems aboard naval aircraft through December 2014.
Finally, the Thales Raytheon Systems joint venture won an $11.9 million contract modification to provide life-cycle contractor support services for the U.S. Army's Sentinel mobile radar system through Dec. 31, 2014.
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.