Raytheon (NYSE: RTN) has been awarded a potential two-year $142.8 million contract to build missiles for the U.S. Navy to defend ships from adversarial missiles, aircraft and surface vehicles.
The Defense Department said Tuesday the company will produce, assemble, test and deliver Rolling Airframe Missile Block 2 guided missile round packs to the Navy under the firm-fixed-price contract, which also includes an option for foreign military sales to Japan.
The RAM weapon system consists of a guided missile round pack and a launching platform and is built through a cooperative development effort between the U.S. and Germany.
The self-defense technology has been installed on more than 165 ships globally and works to detect and engage anti-ship missiles, according to Raytheon.
The Naval Sea Systems Command will obligate about $67 million in fiscal weapons procurement funds at the time of award and Raytheon is scheduled to finish contract work by February 2018.