Raytheon Company (NYSE: RTN) has received a resume work order from the U.S. Navy to commence development of the new Air and Missile Defense Radar. The order followed the official Government Accountability Office update of its database to reflect the status of the AMDR contract award protest as withdrawn.
On October 10, 2013, Raytheon was awarded a $385,742,176 cost-plus-incentive-fee contract for the engineering and modeling development phase design, development, integration, test and delivery of Air and Missile Defense S-Band Radar (AMDR-S) and Radar Suite Controller (RSC). AMDR is the Navy's next generation integrated air and missile defense radar and is being designed for Flight III Arleigh Burke (DDG 51) class destroyers beginning in 2016.
"The Raytheon team and plans are in place, ready to move forward on the program," said Raytheon's Kevin Peppe, vice president of Integrated Defense Systems' Seapower Capability Systems business area. "Our focus is now dedicated to delivering this critical AMDR capability to the Navy."
Under the contract, Raytheon will build, integrate and test the AMDR-S and RSC Engineering Development Models (EDMs). For the ship sets covered under this contract, the AMDR suite will integrate with the existing AN/SPQ-9B X-band radar. The base contract begins with design work leading to Preliminary Design Review and culminates with system acceptance of the AMDR-S and RSC engineering development models at the end of testing.
This contract includes options which, if exercised, would bring the cumulative value of this contract to $1,633,363,781. Previously appropriated FY13 funding in the amount of $156,960,000 will be obligated at time of award. This contract includes options for manufacturing low-rate initial production systems which may be exercised following Milestone C planned for fiscal year 2017.
This contract was awarded following a full and open competition, with three offers received.
Source: Raytheon Corporation (NYSE: RTN)
Date: Jan 13, 2014