The U.S. Navy awarded Raytheon Company (NYSE: RTN) a $66.6 million firm-fixed-price contract for fiscal year 2016 for Rolling Airframe Missile (RAM) Block 2 guided missile round pack requirements. This contract includes options which, if exercised, would bring the cumulative value to $142.8 million, and includes an option for foreign military sales to an international customer.
RAM is a cooperative program between the U.S. and German governments with industry support from Raytheon and RAMSYS of Germany. The contract calls for production work to be shared between both companies.
"RAM Block 2 adds important enhancements to counter a bigger set of targets and give our warfighters an unfair advantage," said Rick Nelson, vice president of Raytheon's Naval Area and Mission Defense product line. "Our partnership with RAMSYS is a great example of Raytheon's commitment to working with countries and companies around the globe."
Work outlined in the contract is expected to be completed by February 2018. The contract was awarded in the fourth quarter of 2015, on Dec. 31.
RAM is a supersonic, quick reaction, fire-and-forget missile providing defense against anti-ship cruise missiles, helicopter and airborne threats, and hostile surface craft. The missile's autonomous dual-mode, passive radio frequency and infrared guidance design provide a high-firepower capability for engaging multiple threats simultaneously. RAM is installed, or planned for installation, aboard more than 165 ships as an integral self-defense weapon for the navies of Egypt, Germany, Greece, Japan, the Republic of Korea, Turkey, the United Arab Emirates and the United States.
The RAM Block 2 upgrade includes a four-axis independent control actuator system and an increase in rocket motor capability, increasing the missile's effective range and delivering a significant increase in maneuverability. The improved missile also incorporates an upgraded passive radio frequency seeker, a digital autopilot and engineering changes in selected infrared seeker components.
Source: Raytheon Corporation (NYSE: RTN)
Date: Jan 11, 2016