The U.S. Navy has awarded Raytheon (NYSE: RTN) a potential six-year, $423 million contract to produce Aegis missile guidance system components and provide engineering support for the service branch and the governments of Japan and South Korea.
The Naval Sea Systems Command will obligate $365.8 million from the military branch’s fiscal 2016 shipbuilding and conversion funds and foreign military sales funds at the time of award, the Defense Department said Friday.
The cost-plus-fixed-fee, fixed-price-incentive contract covers AN/SPY-1D(V) radar transmitter groups and MK 99 missile fire control systems and was awarded as part of a foreign military sales program.
Raytheon said AN/SPY-1D(V) works to help the Aegis missile guidance system search and track targets, while the MK 99 fire control equipment alerts the missile control station of aerial threats.
Work will occur in Massachusetts, New Jersey, Virginia and Ontario, Canada, through October 2022, according to DoD.