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Tag: RTX

Navy awards Raytheon potential $903.9M contract

The Navy has awarded Raytheon, a subsidiary of Arlington County Fortune 500 aerospace and defense contractor RTX, a contract worth up to $903.9 million, if all options are exercised, to provide support for a sensor system, the U.S. Department of Defense announced Monday. 

The initial $34 million firm-fixed-price, cost-plus-fixed-fee, cost-plus-incentive-fee and cost only contract covers design, development, integration, test and maintenance of system capabilities for the design agent and engineering support efforts for the Cooperative Engagement Capabilities (CEC) sensor system. CEC allows data from sensors in different places to provide a single integrated picture, meaning multiple ships, aircraft and land units can share radar target measurements simultaneously in real time.

Purchases for the U.S. Navy makes up 65% of the contract. The contract also includes purchases for the governments of Japan (15%), Australia (13%), Canada (6%) and Germany (1%) under the Foreign Military Sales program, which allows the United States’ international partners to purchase defense equipment and services. 

The U.S. Navy will pay $20.54 million of the contract, with $1.7 million coming from the United States Marine Corps. The governments of Japan, Australia, Canada and Germany will pay about $11.8 million with the contract. About $2.89 million will expire at the end of the current fiscal year. 

Work will be performed in St. Petersburg and Largo, Florida as well as Maynard, Massachusetts. Work is expected to be completed by November 2025. If all options are exercised, work will continue through November 2029.

Last week, the Navy awarded Raytheon a $590.8 million contract to produce nine Next Generation Jammer Mid-Band (NGJ-MB) ship sets for the military branch’s EA-18 Growler electronic warfare aircraft and four more sets for the Royal Australian Air Force. The NGJ-MB is an electronic attack system.

With more than 185,000 employees globally, RTX reported $68.9 billion in sales in 2023. Raytheon is also based in Arlington.

Navy awards RTX subsidiary $590.8M contract for electronic attack system

The Navy has awarded Raytheon, a subsidiary of Arlington County Fortune 500 aerospace and defense contractor RTX, a $590.8 million contract to produce nine Next Generation Jammer Mid-Band (NGJ-MB) ship sets for the military branch’s EA-18 Growler electronic warfare aircraft and four more sets for the Royal Australian Air Force, the U.S. Department of Defense announced last week.

The NGJ-MB is an electronic attack system. The award, which is a cost-plus-fixed-fee contract, includes associated spares, support equipment and non-recurring engineering.

Raytheon employees will perform 48% of the work in Forest, Mississippi; 43% in McKinney, Texas; 7% in El Segundo, California; 2% in Andover, Massachusetts; and 1% in Fort Wayne, Indiana, according to the announcement. The work is expected to be completed January 2028.

The Navy will pay Raytheon $329.6 million in fiscal 2024 and about $75 million in fiscal 2025, while the Royal Australia Air Force will pay more than $185.9 million at the time of the award.

In October, Raytheon announced a $192 million award from the Navy to develop the Next Generation Jammer Mid-Band Expansion, an upgrade to the NGJ-MB system. The modification is designed to extend the system’s frequency range and provide additional capabilities to improve operational effectiveness.

With more than 185,000 employees globally, RTX reported $68.9 billion in sales in 2023.

Army awards $676M contracts for weapon system

The U.S. Army has awarded Raytheon a $676 million contract to continue manufacturing the TOW weapon system, which provides heavy anti-tank guided missile capability, RTX, the Arlington County parent company of Raytheon, a defense contractor, announced Wednesday. 

Two separate awards consist of a $430 million contract for FY 2023 and an additional $246 million contract for 2024. Work for the awards will take place in Tucson, Arizona. 

Raytheon has delivered more than 700,000 of these weapon systems — which include the TOW 2A, TOW 2B and TOW Bunker Buster missiles — to U.S. and international armed forces, according to a news release, which also noted the U.S. Department of Defense has provided Ukraine with approximately 13,000 TOW missiles. The TOW weapon system will be in service with the U.S. and allied forces beyond 2050, according to RTX. 

Recent upgrades to TOW’s design includes updated fuzing and target detection.  TOW weapon systems are compatible with manned and unmanned vehicles, including the U.S. Army High Mobility Multipurpose Wheeled Vehicle, the Stryker Anti-Tank Guided Missile Vehicles and Bradley Fighting Vehicles.

“Our TOW production line is active, and we can manufacture up to 10,000 missiles annually,” Tom Laliberty, president of land and air defense systems at Raytheon, stated in the release. “This combat-proven effector is ready to meet current and future anti-tank guided missile requirements for the U.S. Army, Marines Corps and land forces across the globe.”

Earlier this month, the U.S. Department of Justice announced that Raytheon has agreed to pay more than $950 million to resolve multiple allegations that include fraud and bribing a Qatari official.

With more than 185,000 employees globally, RTX reported $68.9 billion in sales in 2023.

Raytheon wins $900M contract modification

The Department of Defense’s Missile Defense Agency has awarded a $900 million contract modification to Raytheon, a subsidiary of Arlington County’s RTX, according to a DOD notice posted Friday. 

Under the extension, Raytheon, a defense contractor that is also based in Arlington County, will continue operations and support for the Sea-based, X-band Radar (SBX 1), a nine-story, floating radar system that can detect and track ballistic missiles, and the 13 Army-Navy Transportable Radar Surveillance and Control Model 2 radar systems, which also detect and track ballistic missiles.  

The non-competitive two-year-extension will increase the ceiling of the indefinite delivery, indefinite quantity contract from $1.7 billion to $2.6 billion. The modification will extend the ordering period to Oct. 31, 2026, resulting in an overall contract ordering period of nine years.

In 2017, the Missile Defense Agency awarded Raytheon a $1.5 billion deal for operations and sustainment of the X-band Radar and the Army Navy Transportable Radar Surveillance Model 2 systems.

Work will be performed in Massachusetts and at multiple radar sites inside and outside the United States.

In 2020, Raytheon merged with United Technologies to form Raytheon Technologies. In 2022, the company relocated its global headquarters from Massachusetts to Arlington. The company rebranded as RTX in 2023.

Earlier this month, the U.S. Department of Justice announced that Raytheon has agreed to pay more than $950 million to resolve multiple allegations that include fraud and bribing a Qatari official.

With more than 185,000 employees globally, RTX reported $68.9 billion in sales in 2023.

Raytheon to pay $950M+ to resolve fraud, bribery charges

The U.S. Department of Justice announced Wednesday that Arlington County’s Raytheon, a subsidiary of aerospace and defense contractor RTX, has agreed to pay more than $950 million to resolve multiple allegations that include fraud and bribing a Qatari official.

Under Wednesday’s settlement, Raytheon must pay the following penalties:

  • For two counts of major fraud in allegedly overcharging the U.S. Department of Defense by $111 million, Raytheon will pay a criminal monetary penalty of $146.78 million and $111.2 million in victim compensation.
  • Under a civil False Claims Act settlement related to the DOD allegations, Raytheon was penalized $428 million, but the $111.2 million in victim compensation will be credited toward that amount.
  • In the bribery case, filed in the Eastern District of New York, Raytheon will pay a criminal penalty of $230.4 million and pay forfeiture of $36.69 million. In addition, to resolve the Securities and Exchange Commission’s parallel investigation, Raytheon will pay $49.1 million in disgorgement and a civil penalty of $75 million, $22.5 million of which will go toward the criminal penalty.
  • For allegedly failing to disclose to the U.S. Department of State and the Directorate of Defense Trade Controls the bribes reportedly paid to a Qatari official, Raytheon will pay a financial penalty of $21.9 million.

Raytheon entered into a three-year deferred prosecution agreement Wednesday in the fraud case, which was filed in federal court in Massachusetts, and stems from charges that Raytheon employees allegedly provided false information to the U.S. Department of Defense that inflated costs for purchasing missile systems and operating and maintaining a radar system from 2012 through 2013, and 2017 through 2018. In addition to the financial penalties, Raytheon will have an independent compliance monitor for the next three years.

The bribery charges stem from a reported scheme among Raytheon employees between 2012 and 2016 to bribe a high-level official with the Qatar Emiri Air Force, a branch of the Middle Eastern country’s armed forces, to assist the contractor in obtaining and retaining their business. According to the DOJ, Raytheon made payments to the official by creating “sham subcontracts” for air defense studies, with funds going to the official.

In addition to the financial penalties, Raytheon and RTX have agreed to an independent compliance monitor for the next three years, as well as improvements and enhancements to the company’s compliance programs.

“The department is committed to holding accountable those contractors that knowingly misrepresent their cost and pricing data or otherwise violate their legal obligations when negotiating or performing contracts with the United States,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said in a statement.

In 2020, Raytheon merged with United Technologies to form Raytheon Technologies. In 2022, the company relocated its global headquarters from Massachusetts to Arlington. The company rebranded as RTX in 2023. 

“These legacy legal matters relate to conduct that occurred at Raytheon Company largely prior to 2020,” noted RTX spokesperson Chris Johnson in a written statement. “RTX is taking responsibility for the misconduct that occurred,” he added in the statement. “We have worked diligently during the investigations to remediate that misconduct and continue to do so.”

RTX noted it had set aside more than $1.2 billion to resolve pending legal matters in a July SEC filing. 

In August, the State Department announced RTX had agreed to pay $200 million to resolve allegations of violating the Arms Export Control Act and the International Traffic in Arms Regulations. 

With more than 185,000 employees globally, RTX reported $68.9 billion in sales in 2023.

7 Va. companies make 2024 Fortune Global 500

Seven Virginia-based companies made Fortune magazine’s 35th Global 500 list, released Monday. Companies were ranked by total revenues for fiscal years ending on or before March 31.

McLean’s Freddie Mac remained the commonwealth’s top-ranked company at No. 88 — up 45 spots from 2023. The government-sponsored home mortgage company reported net income of $10.5 billion for full-year 2023, an increase of 13% year-over-year. Its former CEO, Michael DeVito, retired earlier this year, and President Mike Hutchins is serving as interim CEO. 

Boeing, headquartered in Arlington County, followed at No. 159 — up from No. 197 in 2023 — with $77.8 billion in revenue. It’s a silver lining for a company facing herculean challenges stemming from the midair blowout of its 737 Max 9 jet in January, which has led to financial woes and federal scrutiny ever since. 

In late July, Boeing’s board of directors named Robert K. “Kelly” Ortberg the aerospace and defense giant’s next president and CEO, succeeding Dave Calhoun, who previously announced his intention to step down after a turbulent, nearly four-year tenure as the company’s leader. In July, Boeing finalized a guilty plea to a federal criminal fraud conspiracy charge, under which it will pay at least $243.6 million in fines for violating a 2021 deferred prosecution agreement with the U.S. Justice Department that stemmed from Boeing’s role in two fatal 737 Max crashes in 2018 and 2019. Meanwhile, Boeing received no orders for its 737 Max planes in April and May, and in June, it sold only three 737 Max jets.

RTX, which is also based in Arlington County and was formerly Raytheon Technologies, came in at No. 188 — up from No. 195 last year. The aerospace and defense contractor reported $68.9 billion in revenue in 2023, up 3% from the prior year. 

Goochland County’s Performance Food Group took the No. 272 spot, up from No 304 last year and came in as Virginia’s fourth highest-ranking company on the list. The ​​food and foodservice distribution company reported $57.3 billion in net sales for fiscal 2023, a 13% increase over 2022.

The list follows Fortune’s annual list of the top 1000 U.S. companies, the latest of which was released in June; 39 Virginia-based companies made that list, with 24 making it onto the elite 500.

Eight Virginia companies made the Fortune Global 500 last year. Goochland County’s CarMax fell off the list in 2024, after ranking No. 498 in 2023. In an April earnings call, CEO Bill Nash said the market for the used car industry is challenging because “vehicle affordability and widespread macro factors continue to pressure sales.”

Taking the lead of the Fortune Global 500 for the 11th consecutive year is Walmart. The Arkansas-based retailer reported $648.1 billion for its 2024 fiscal year which ended Jan. 31. Walmart has held the No. 1 spot 19 times since 1995. Amazon followed at No. 2, up from No. 4 in 2023, with net sales of $574.8 billion, a 12% increase over 2022.  

The United States had more companies on the list (139) than Greater China (133) for the first time since 2018. Greater China includes the mainland, Hong Kong, Macau and Taiwan. Of the 10 most profitable Fortune Global 500 companies, nine out of 10 are located in China and the United States. 

These are the Virginia-based companies that made the 2024 Fortune Global 500 list, in order of ranking:

88) Federal Home Loan Mortgage (“Freddie Mac”), McLean

159) Boeing, Arlington County

188) RTX, Arlington County

272) Performance Food Group, Goochland County

304) Capital One Financial, McLean

362) General Dynamics, Reston

382) Northrop Grumman, Falls Church

 

Virginia’s Fortune 500 companies

This year, 24 Virginia companies made Fortune magazine’s 70th annual Fortune 500 list, which ranks the nation’s largest corporations by total revenue.

Several companies’ fortunes rose, with top-ranked Virginia company Freddie Mac moving up nine spots to No. 36 on the
overall Fortune 500, posting $108.05 billion in revenue last year.

Meanwhile, Virginia’s second-ranked company, beleaguered aerospace and defense contractor Boeing, rose six spots to No. 52 on the Fortune 500. Boeing President and CEO Dave Calhoun plans to step down amid ongoing scrutiny of production problems and fallout from a January incident in which a panel blew out of a Boeing 737 Max jet cabin in mid-air. Boeing agreed in July to plead guilty to federal fraud charges stemming from two fatal crashes.

Fellow aerospace and defense company RTX ranked No. 3 among Virginia companies on the Fortune 500, ascending two spots to No. 55.

Also notable this year was global hotelier Hilton, which jumped 42 spots to No. 389, cementing its post-pandemic turnaround after dropping off the Fortune 500 in 2021 and 2022.

The Virginia company with the biggest slide on this year’s Fortune 500 list was Fortune 500 IT company DXC Technology, which slipped 39 places to No. 294.  

Raytheon gets $325M boost to StormBreaker contract

The U.S. Department of Defense has increased the ceiling of an existing U.S. Air Force contract held by Arlington County’s Raytheon, a subsidiary of Fortune 500 defense contractor RTX, by $325 million, the Department of Defense announced Friday. 

The contract, under which Raytheon is producing StormBreaker Increment II small-diameter glide bombs for fighter jets, has been modified to raise its ceiling $275 million to $600 million. 

Work will be performed in Tucson, Arizona, and is expected to be completed by the end of 2026, according to the federal government. 

In other company news, Raytheon received two mentor-protégé agreement contracts from the U.S. Department of the Navy Office of Small Business Programs to support the development of artificial intelligence for U.S. Department of Defense programs and platforms, the company announced Monday. 

Raytheon won three-year contracts to mentor California’s Anacapa Micro Products, which provides IT solutions to the government, and Nara Logics, a Boston developer of a synaptic intelligence platform. Raytheon will provide mentorship on system design, software architecture, systems integration, IT security constraints and authority-to-operate requirements, according to a news release.  

Raytheon, Anacapa Micro Products and Nara Logics plan to accelerate the development of next-generation autonomous capabilities to improve the effectiveness of service members’ decision making, the news release stated. 

“Through this partnership, we’ll leverage commercial innovations that can make meaningful contributions to our defense capabilities and, ultimately, the success of our servicemen and women,” stated Colin Whelan, president of advanced technology at Raytheon.

Former U.S. Sen. Sam Nunn, D-Georgia, created the Mentor-Protégé Program in 1990. It helps small businesses “expand their footprint in the defense industrial base,” according to the Department of Defense. 

An participant in the program since 1991, Raytheon has nine active mentor-protégé agreements currently, according to a company spokesperson. 

Also based in Arlington, RTX has more than 185,000 employees globally and had $68.9 billion in sales in 2023. The company rebranded from Raytheon Technologies to RTX in June 2023 and has three business units: Collins Aerospace, Pratt & Whitney and Raytheon.

 

These 39 Va. companies made the 2024 Fortune 1000

Thirty-nine companies headquartered in Virginia are on Fortune magazine’s 70th annual Fortune 1000 list, with 24 Virginia companies again making the elite Fortune 500.

Several of the Virginia companies saw their fortunes rise this year on the list, with top-ranked Virginia company Freddie Mac moving up nine spots to No. 36 on the overall Fortune 500, posting $108.05 billion in revenue for 2023. The federally sponsored mortgage enterprise’s former CEO, Michael J. DeVito, retired earlier this year, with company President Mike Hutchins appointed as interim CEO.

Meanwhile, Virginia’s second-ranked company, beleaguered aerospace and defense contractor Boeing, rose six spots to No. 52 on the Fortune 500, with $77.79 billion in revenue posted last year. Boeing President and CEO Dave Calhoun plans to step down by the end of the year, an announcement that came in March amid ongoing bad press over production problems and fallout from a high-profile January incident in which a 4-foot wall panel blew out of a Boeing 737 Max 9 jet cabin in mid-air. The Justice Department informed a federal judge on May 14 that Boeing violated terms of a settlement allowing the company to avoid prosecution in relation to two deadly 737 Max crashes in 2018 and 2019. Prosecutors have until July 7 to inform the court whether the federal government will take action against Boeing.

Fellow aerospace and defense company RTX, formerly known as Raytheon Technologies, is Virginia’s third-ranked company on the Fortune 500 this year, with $68.9 billion in 2023 revenue, rising two spots to No. 55. Raytheon rebranded as RTX in June 2023 as part of a business reorganization that saw RTX consolidate into three business units: aerospace and defense technology supplier Collins Aerospace, headquartered in Charlotte, North Carolina; aerospace manufacturer Pratt & Whitney, headquartered in East Hartford, Connecticut; and Arlington-based Raytheon, which includes the company’s former Raytheon Intelligence & Space and Raytheon Missiles & Defense segments.

Released Tuesday, the Fortune 1000 list ranks the 1,000 largest United States corporations by total revenue, including public companies and private companies for which revenue information is available.

The past year has been a good one for aerospace and defense in Virginia, evidently, with McLean-based V2X rocketing 155 slots on the Fortune 1000 this year, up to No. 752. V2X, which will see Peraton Chief Operating Officer Jeremy Wensinger taking over as V2X’s CEO from Chuck Prow this month, formed in 2022 from the $2.1 billion merger of Colorado-based government contractor Vectrus and Mississippi-based The Vertex Co. The company reported 2023 revenue of $3.96 billion, up 8% over 2022.

Also notable this year is McLean-based global hotelier Hilton, which jumped 42 spots to No. 389 on the Fortune 500, cementing its post-pandemic turnaround after dropping off the Fortune 500 in 2021 and 2022. Hilton posted $10.24 billion in 2023 revenue, up from $8.77 billion the previous year.

The company with the biggest slide on this year’s Fortune 1000 list was newspaper publisher Gannett, which sank 65 slots to No. 966. Previously based in McLean, Gannett moved its headquarters to New York in March. Tysons-based Tegna, the nation’s largest owner of NBC-affiliate TV stations, dropped 52 spots, to No. 908. Fortune 500 IT company DXC Technology in Ashburn slipped 39 places to No. 294.

Last year, 36 Virginia companies made the Fortune 1000 list, with 24 on the Fortune 500.

This year, 10 Virginia Fortune 500 companies are based in Fairfax County, retaining its status as the Virginia locality with the most Fortune 500 companies. The metro Richmond area, including Hanover, Henrico and Goochland counties, has the second most companies on the Fortune 500, with eight companies. Arlington County has three companies on the Fortune 500.

These are the Virginia-based companies that made the 2024 Fortune 1000 list, in order of ranking:

36) Federal Home Loan Mortgage (“Freddie Mac”), McLean

52) Boeing, Arlington County

55) RTX, Arlington County

84) Performance Food Group, Goochland County

91) Capital One Financial, McLean

104) General Dynamics, Reston

109) Northrop Grumman, Falls Church

141) CarMax, Goochland County

143) Dollar Tree, Chesapeake

196) Altria Group, Henrico County

230) Dominion Energy, Richmond

262) Markel Group, Glen Allen

266) Leidos, Reston

294) DXC Technology, Ashburn

319) AES, Arlington County

357) Huntington Ingalls Industries, Newport News

388) Owens & Minor, Mechanicsville

389) Hilton, McLean

406) NVR, Reston

422) Booz Allen Hamilton, McLean

429) Beacon Roofing Supply, Herndon

453) Arko, Henrico County

477) Genworth Financial, Henrico County

479) Science Applications International Corp. (SAIC), Reston

525) CACI International, Reston

608) Parsons, Centreville

653) Maximus, Reston

655) Brink’s, Henrico County

657) Navient, Herndon

691) ASGN, Glen Allen

694) Graham Holdings, Arlington County

752) V2X, McLean

908) Tegna, Tysons

941) AvalonBay Communities, Arlington County

956) NewMarket, Richmond

957) Park Hotels & Resorts, Tysons

966) Gannett, McLean

979) Universal Corp., Richmond

999) BWX Technologies, Lynchburg

RTX subsidiary lands $118M Army contract

The U.S. Army has finalized a contract potentially worth $118 million with Arlington County-based Raytheon, a subsidiary of RTX, to produce common sensor payloads, which will serve as “eyes” for an uncrewed aircraft system, the government announced Tuesday. 

The common sensor payloads, which will be used on California-based General Atomics Aeronautical Systems’ MQ-1C Gray Eagle, will offer day and night high-definition imagery as well as targeting capability for laser-guided munitions, according to a U.S. Army’s statement

Under the undefinitized contract action, the new common sensor payloads will also offer target location accuracy capability, which enables “precision, near-real-time engagements with coordinate-seeking weapons by reducing the sensor-to-shooter process from minutes to seconds,” the U.S. Army explained.  

Raytheon will produce the third version of the Common Sensor Payload. Since the CSP was first developed in 2011, previous versions have been used in more than a million flight hours on the Gray Eagle for U.S. Army units worldwide. 

“The CSP v3 is the latest iteration of the CSP, which resolves several critical subcomponent obsolescence issues present on the currently fielded CSP v2 and incorporates updated sensor hardware to provide enhanced imaging capabilities,” Doug Haskin, product manager of the U.S. Army’s Office of Aerial Enhanced Radars, Optics, and Sensors, said in the release. 

The U.S. Army awarded Raytheon initial partial funding for CSP v3 production in June of 2023, allowing Raytheon to begin work. The CSP v3 production systems are expected to begin delivering in June 2025, with a first unit equipped date planned for FY 2026, according to the U.S. Army.

Raytheon rebranded as RTX in June of 2023, a year after moving to headquarters to Arlington County. It has three subsidiaries: Collins Aerospace, an aerospace and defense technology supplier with headquarters in Charlotte, N.C.; Pratt & Whitney, an aerospace manufacturer with headquarters in Connecticut and Raytheon, which was formerly Raytheon Intelligence & Space and Raytheon Missiles & Defense.

RTX, which is also based in Arlington County, has more than 185,000 employees.