Raytheon wins $1.8B Navy radar contract modification

Investing.com - Raytheon Missiles and Defense was awarded a $1.81 billion contract modification by the U.S. Department of War for hardware production of the AN/SPY-6(V) Family of Radars and associated hardware, the department announced Monday.

The modification to the previously awarded contract (N00024-22-C-5500) is a fixed-price incentive (firm-target), firm-fixed-price, and cost-only arrangement. The contract includes options which, if exercised, would bring the cumulative value to $3.39 billion.

Work will be performed across multiple U.S. locations, with 30% in Andover, Massachusetts, 10% in San Diego, California, 10% in Scottsdale, Arizona, and 8% in Syracuse, New York. The contract is expected to be completed by July 2031, with work continuing through October 2031 if all options are exercised.

The contract is funded by fiscal 2025 research, development, test and evaluation funds totaling $847.3 million (47%) and fiscal 2025 shipbuilding and conversion funds totaling $706.9 million (39%). Fiscal 2026 other procurement funds account for $204.6 million (11%), with additional funding from fiscal years 2016 through 2024.

Naval Sea Systems Command, Washington, D.C., is the contracting activity. The contract was procured under 10 U.S. Code 3204(a)(1) as the only responsible source that can satisfy agency requirements.

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