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Navy awards Raytheon potential $903.9M contract

Arlington RTX subsidiary wins initial contract worth $34M

Beth JoJack //December 4, 2024//

The Arleigh Burke-class guided-missile destroyer USS McCampbell (DDG 85), USS Higgins (DDG 76), Lewis and Clark-class dry cargo ship USNS Carl Brashear (T-AKE 7) and the Royal Canadian Navy Halifax-class frigate HMCS Ottawa (FFH 341) conduct a refueling-at-sea while underway in the Philippine Sea on Nov. 17. (U.S. Navy photo by Mass Communication Specialist Seaman Geoffrey L. Ottinger)

The Arleigh Burke-class guided-missile destroyer USS McCampbell (DDG 85), USS Higgins (DDG 76), Lewis and Clark-class dry cargo ship USNS Carl Brashear (T-AKE 7) and the Royal Canadian Navy Halifax-class frigate HMCS Ottawa (FFH 341) conduct a refueling-at-sea while underway in the Philippine Sea on Nov. 17. (U.S. Navy photo by Mass Communication Specialist Seaman Geoffrey L. Ottinger)

Navy awards Raytheon potential $903.9M contract

Arlington RTX subsidiary wins initial contract worth $34M

Beth JoJack // December 4, 2024//

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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.

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