Raytheon (NYSE:RTN) was one of the biggest winners in last night's announcement of defense contracts awarded by the Pentagon. Out of the 38 contracts awarded, and $7.14 billion in total value, Raytheon claimed four wins -- likely to yield revenues worth $463.4 million.
Raytheon's biggest win of the day was a $235.5 million firm-fixed-price partial-foreign military sales contract to supply 72 radar digital processor upgrade kits for the Phased Array Tracking Radar to Intercept On Target weapon system -- better known by its acronym, the "PATRIOT" air defense system. Out of these kits, 62 will go to the U.S. Army and 10 more will go to allied nations Kuwait and the Netherlands. Deliveries are due March 31, 2017. The Pentagon was not specific as to how the kits would be divided between the two foreign buyers.
The company's other wins included:
- A $163.2 million contract to perform Advanced Medium-Range Air-to-Air Missile (AMRAAM) Program Support and Sustainment (PSAS) work for the U.S. Air Force and Navy, and for the militaries of allied countries Korea, Israel, Saudi Arabia, Singapore, and the United Arab Emirates. Raytheon will provide sustaining engineering, program management, and logistics support aimed at extending the lifespan of the AMRAAM Central Processing Unit, improving the AMRAAM's guidance section, and developing necessary testing equipment. This work should be completed by Jan. 31, 2017.
- A $50.2 million contract modification funding procurement of necessary materials, followed by the fabrication, testing, and delivery to the U.S. Missile Defense Agency of 52 SM-3 Block IB missiles by Feb. 8, 2017.
- A contract modification worth an estimated $14.5 million funding enhancements to and deployment of an Object Classification (OC) database -- also for the U.S. Missile Defense Agency. This contract runs through Oct. 31, 2017.