Raytheon awarded $365 million Aegis contract

WASHINGTON, May 31 (UPI) -- Raytheon's Integrated Defense Systems division has been awarded a $365.8 million fixed-price-incentive, cost-plus-fixed-fee U.S. Navy contract.

The award covers production of Aegis Weapon System AN/SPY-1D(V) Radar Transmitter Group, Missile Fire Control System MK 99 equipment, as well as associated engineering services.

The contract includes options which would bring the cumulative value to $423 million if exercised.

This contract combines purchases under the Foreign Military Sales program, with the U.S. Navy paying 17 percent, South Korea paying 50 percent and Japan paying 33 percent.

The work will be performed in Massachusetts, New Jersey, Virginia and Canada, and is expected to be completed by October 2022.

Naval Sea Systems Command is the contracting activity.