Raytheon Company has been awarded a $37,723,774 firm-fixed-price, fixed-price-incentive, cost and cost-plus-fixed-fee contract for the procurement of MK 54 lightweight torpedo common parts kits; MK 54 Mod 0 lightweight torpedo kits; and MK 54 exercise fuel tanks, spares, production support material, engineering support, and hardware repair support.
This contract includes options which, if exercised, would bring the cumulative value of this contract to $448,737,790. This contract combines purchases for the U.S. Navy (98 percent) and the Government of Thailand (2 percent) under the Foreign Military Sales Program.
Work will be performed in Keyport, Washington (70%); Portsmouth, Rhode Island (25%); and Tewksbury, Massachusetts (5%) and is expected to be completed by May 2019. Fiscal 2016 weapons procurement (Navy), fiscal 2016 weapons procurement spares (Navy), and foreign military sales funding in the amount of $36,113,068 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with two offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-16-C-6423).
Meanwhile, the U.S. Army has awarded Raytheon Company a $5.7 million risk-mitigation contract for the Long Range Precision Fires program. The new missile will replace the Army's aging inventory of long range, surface-to-surface missiles. Fired from mobile launchers, LRPF will fly farther, faster, and feature a new warhead.
“As the world’s largest missile maker, Raytheon is ideally positioned to develop the Long Range Precision Fires solution the Army needs. With our wide portfolio of products, proven technology and guided missile expertise, Raytheon can deliver a low-risk, highly effective and affordable solution,” said Dr. Thomas Bussing, Raytheon Advanced Missile Systems Vice President.
The Army’s current inventory of long range, precision-guided, surface-to-surface missiles dates back to the 1980s. The new LRPF missile will be more affordable, survivable against advanced threats, and more compact, allowing the Army to double the fire power of long-range missiles in its mobile launchers.
Under the 9-month risk-reduction contract, Raytheon will conduct baseline system design. The Army is expected to solicit proposals for a more comprehensive technical maturation/risk reduction phase later, an effort that will culminate in flight testing.
Raytheon Company, with 2015 sales of $23 billion and 61,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions.
With a history of innovation spanning 94 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I™ products and services, sensing, effects, and mission support for customers in more than 80 countries.
