Navy contract worth up to $1.6 billion awarded to Raytheon

Navy contract worth up to $1.6 billion awarded to Raytheon

40
0
SHARE

Navy contract worth up to $1.6 billion awarded to RaytheonRaytheon Co. has announced that it has won a major contract from the U.S. Navy. The contract involves building radars for air and missile defense. Based in Waltham, Mass., the defense contractor has said that it is designing the radar for the Flight III Arleigh Burke destroyer, starting in 2016.

While the initial project is worth $385.7 million, the entire value of the project could increase to $1.6 billion if options are exercised, according to the company.

Sponsored Links

Raytheon’s shares fell 21 cents, leveling off at $76.05 during afternoon trading on Friday. They have increased significantly, 39 percent, during the last year. Many experts refer to Raytheon being awarded the contract as a “breakthrough victory.” The company has repeatedly beaten out the competition for recent contracts that focus on the development of next generation combat systems. Competitors for this project included Lockheed Martin and Northrop Grumman.

The loss of this contract may be considered a major setback for Lockheed Martin. Lockheed Martin has literally dominated the naval electronics market for at least a generation, gaining support from its status as a prime contractor on the Aegis combat system.

Its success with that project turned into an ongoing list of continuous successes. Aegis is considered the most capable missile defense system that has ever been deployed on land or sea. Back in March, when it was announced that Lockheed Martin won a major competition to serve as the lead integrator on that program all the way through 2018, it was assumed that the company’s dominance of the naval electronics project realm would continue.

Looking at Northrop Grumman, it seems as though their place in the competition would have been a longshot. The company is known to have its expertise elsewhere, so some were surprised they even got in the running. Just this past July Raytheon won the Navy’s Next Generation Jammer competition against Northrop Grumman, who is the incumbent on the existing jammer and who was the expected victor.

Winning such significant bids, Raytheon has definitely impacted its revenue for decades.

More News

A new report released today highlighted improvement in new orders for U.S. factory goods in March. The primary reason for improvement was an increase in the demand of transportation equipment. However, overall factory goods data was lower than expected with...
Scientists are still on full alert as seismic activity continues at the summit of Kīlauea Volcano. Scientists have monitored an increased seismic activity and extensive eruptions under the summit and the upper East and Southwest Rift Zones within about 8...
U.S. treasury yields continue an upward trend on Friday after reaching a seven-week high growth figure. U.S. factory activity failed to grow except for an increase in vehicle sales. There is no doubt that the economy is moving forward...
The growing number of Burmese Pythons that are invading and establishing viable populations in the Everglades is a cause for major concern for land managers. The basic problem is that this invasive species competes with native wildlife for food, threatening...
One of the oldest Agave Americana plants is soon going to sing its swan song. In its habitat, the greenhouse at Truman State University in Kirksville, Missouri, the unique plant will blossom for the first and last time. Hence the greenhouse has put...