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Air Force Taps Northrop, Raytheon for JSTARS Recap Risk Reduction Contracts

JSTARSNorthrop Grumman (NYSE: NOC) and Raytheon (NYSE: RTN) have secured contracts worth $130.3 million combined to help reduce radar risks for the U.S. Air Force‘s Joint Surveillance Target Attack Radar System Recapitalization program.

The service branch awarded $70.3 million to Northrop’s systems business and $60 million to Raytheon’s space and airborne systems unit, the Defense Department said Thursday.

The contracts cover nonrecurring engineering support for JSTARS Recap’s software and hardware components in line with wide area surveillance requirements.

Both companies will perform work in Maryland through Sept. 30, 2017.

The JSTARS weapons system works to help uniformed personnel identify, track and locate mobile and stationary ground targets from a distance.

The JSTARS Recap program seeks to update the weapon system’s active electronically scanned array radar and introduce open systems architecture to the system’s components.

The Air Force Life Cycle Management Center will obligate a total of $15 million from fiscal 2015 and fiscal 2016 research, development, test and evaluation funds at the time of award, according to DoD.

The service branch issued a notice of its intention in January 2016 to execute two sole-source contracts for risk reduction and technical maturation services in support of the JSTARS Recap initiative.

The awards come after Northrop, Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT) received $31.4 million in contracts in August 2015 to help the military branch develop risk reduction schemes and prototypes for the JSTARS Recap program.

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