March 26 (UPI) -- Raytheon Missile Systems announced Thursday that it has made a $1 billion, five-year strategic deal to buy propulsion systems from Aerojet Rocketdyne for Standard Missile projects.
"Moving to multi-year, rather than annual-year contracting enables Raytheon and its supply chain to deliver even more value to our Missile Defense Agency and U.S. Navy customers, and the taxpayer," said Eugene Jaramillo, Raytheon Missile Systems vice president of Global Supply Chain Management. "These multi-year agreements also allow our suppliers to transform the way they do business with Raytheon."
Aerojet Rocketdyne provides propulsion systems for Raytheon's Standard Missile family.
In December, Raytheon received a $28.9 million contract for Standard Missile-2 and Standard Missile-6 repairs.
Work on the programs will be performed in Orange County, Va., Camden, Ark., Huntsville, Ala.
"Aerojet Rocketdyne has supported one or more variants of the Standard Missile program for more than three decades; we are proud of our contributions to these vital defense products," said Eileen Drake, Aerojet Rocketdyne CEO and president. "This significant agreement on multi-year contracts strengthens our current relationship and positions Aerojet Rocketdyne favorably for future business opportunities and continued growth."
On Wednesday, Defense News reported that Raytheon had exited from the Army's Precision Strike Missile technology maturation and risk reduction phase in what it described as a mutual decision.