Raytheon Company (NYSE: RTN) and Kentucky-based Phoenix Products, Inc. signed a U.S. Department of Defense Mentor-Protégé agreement to produce Naval Strike Missile, or NSM, transport containers under a $1.6 million U.S. Navy contract.
In 2018, the U.S. Navy selected the Naval Strike Missile for its over-the-horizon weapon system. Raytheon has teamed with Norway’s Kongsberg to bring the fifth-generation missile stateside. (Photo: Kongsberg)
PPI is a woman-owned, small business that is in a Historically Underutilized Business Zone. Raytheon and Oakwood University in Huntsville, Alabama, will train and support PPI in technical, quality and management processes.
The mentor-protégé program provides large businesses with incentives to help smaller ones develop technical and operating capabilities to be more competitive with DoD programs. The three-year agreement with PPI marks progress in Raytheon's domestic production of the missile designed by Norway's defense leader Kongsberg.
"Raytheon is partnering with small and disadvantaged businesses to help them succeed and contribute to our industry," said Kim Ernzen, Raytheon Air Warfare Systems vice president. "NSM production is bringing jobs and revenue to a growing network of U.S. suppliers, and it is all the more meaningful when the work makes a significant impact in a local community. It's a win for everyone."
PPI's experience manufacturing similar containers makes it an ideal fit for Raytheon's latest production needs.
"The program will enable PPI to take the next steps to be a fully capable aerospace container and ground support equipment manufacturer," said Tom Wilson, PPI president. "It will help ensure we continue to employ highly capable people and train local residents with significant skill sets for now and in the future."
Kentucky Congressman Hal Rogers, a senior member of the Defense Appropriations Subcommittee, said the agreement is beneficial for everyone involved.
"This partnership demonstrates the continued commitment of the defense industry to reach out to new and innovative suppliers in Kentucky to meet its requirements," Rogers said. "I advocated on behalf of the mentor-protégé agreement with the Navy and look forward to the 5th Congressional District being a long-term partner on this advanced cruise missile program."
Source: Raytheon Corporation (NYSE: RTN)
Date: Jan 15, 2019