Raytheon Co. (RTN) received four contracts from the Department of Defense (“DoD”) on Dec 10, 2014 worth about a total $148 million.
Of these four contracts, the biggest is worth $64.1 million, a follow-on order against a previously issued contract. Per the contract, Raytheon will be engaged in the repair of 25 weapon assemblies and 35 shop assemblies of the Advanced Targeting Forward Looking Infrared System, which is used as a support system on the F/A-18 Aircraft. The contract work will be carried out at various places namely Texas, Florida and California and is expected to be over by 2016-end. The contracting activity is the NAVSUP Weapon Systems Support, Philadelphia, PA.
The second largest contract was for $59.4 million, a modification contract to procure tube launched optically tracked wireless guided missiles. The contracting activity is Army Contracting Command, Redstone Arsenal, AL. Work on the contract is expected to be over by Jul 2016.
The remaining two contracts from the DoD are worth $12.3 million and $12 million. The $12.3 million contract is a modification contract, which entitles Raytheon to buy support and training materials. The contracting activity is the Naval Sea Systems Command, Washington, District of Columbia. The contract work is expected to be over by Apr 2016.
The other $12 million contract includes performing repair work on the six Improved Multi-Platform Launch Controllers (“IMPLCs”). Additionally, Raytheon will repair 11 primary power supplies and other 48 IMPLCs. The contracting activity is NAVSUP Weapon Systems Support, Philadelphia, PA and work is expected to be over by Oct 2016.
Raytheon’s diverse product offering allows it to win regular contracts from the DoD. Recently in Nov 2014, the U.S. Air Force awarded Raytheon with a $174.5 million follow-on contract. Per the contract, Raytheon will provide field support for the high-altitude intelligence, surveillance and reconnaissance and the Distributed Command Ground System missions.
Raytheon is one of the largest aerospace and defense companies in the U.S. contending with other major players like The Boeing Co. (BA), Northrop Grumman Corp. (NOC) and General Dynamics Corp. (GD). It currently sports a Zacks Rank #3 (Hold).
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