Raytheon and GD JV awarded USAF Launch and Test Range Contract
The U.S. Air Force has awarded one of its most important space procurements, potentially a multi-billion-dollar contract to operate, maintain, and sustain launch ranges at Florida's Space Coast and Vandenberg Air Force Base in California , to a joint venture of Raytheon (NYSE: RTN) and General Dynamics.
The joint venture, called Range Generation Next (RGNext) is responsible for operations, as well as organizational and depot-level maintenance and sustainment for safe and effective launch, testing, and tracking of Department of Defense, civil, commercial, and international spacelift vehicles. It will also support ballistic missile, guided weapon, and aeronautical tests and evaluations.
Defense Industry Business Confidence Report - H1 2017
The $1.5 billion , single-award contract has a one-year base period with nine one-year options. Raytheon and General Dynamics formed RGNext to pursue the opportunity, known as the U.S. Air Force Space and Missile Systems Center's Launch and Test Range System (LTRS) Integrated Support (LISC) contract, supporting the U.S. Air Force Space Command .
Existing operations and maintenance at the Eastern and Western launch ranges and the engineering and sustainment work for the entire LTRS are being consolidated into LISC, primarily a fixed-price-incentive firm (target) contract.
"Together, Raytheon and General Dynamics offer the U.S. Air Force more than 40 years of operations and maintenance experience, along with leadership across information technology domains," said Lynn Dugle , president of Raytheon Intelligence, Information and Services. "In this cost-sensitive environment, LISC will deliver efficiencies and economies of scale that could not be obtained under separate contracts. Our team is eager to play its part in helping the customer ensure safe mission operations."
"As part of this proven team, General Dynamics Information Technology will leverage lessons learned and proven processes to ensure the ranges continue as the nation's premier launch facilities," said Dan Johnson , president of General Dynamics Information Technology.
Source : Raytheon Corporation (NYSE: RTN) - view original press release
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