April 20 (UPI) -- Raytheon has been awarded a contract by the U.S. Navy for services in support of the Air and Missile Defense Radar Program.
The deal, announced by the Department of Defense, is valued at more than $136.5 million under the terms of a fixed-price-incentive, firm target contract, which is a modification of a previous contract.
The contract from Naval Sea Systems Command enables Raytheon to provide low rate initial production work in support of the Air and Missile Defense Radar Program, or AMDR, on guided missile destroyer flight III class ships, the Defense Department said.
The AMDR, also called the AN/SPY-6(V), is a next generation radar Raytheon is developing for the Navy for inclusion on Arleigh Burke-class guided-missile destroyers, as well as other classes of warship and the Littoral Combat Ship, according to the company.
The new radars are about 30 times as powerful as their predecessors, Raytheon says, and will be installed on Flight III variations of the Burke-class, the first of which is the USS Jack H. Lucas.
Work on the contract will occur in Marlborough, Mass., and is expected to be complete by April 2021.
The total amount of the contract will be obligated to Raytheon from Navy fiscal 2018 shipbuilding and conversion funds at time of award.
The obligated funds will not expire at the end of the current fiscal year, the Pentagon said.