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Raytheon Lands $197M Navy Anti-Ship Missile Defense Contract

Raytheon logoRaytheon (NYSE: RTN) has received a potential $197.3 million contract to build anti-ship missile defense systems for the U.S. Navy and foreign customers under an international cooperative program.

The Defense Department said Thursday that Raytheon will design and test the Evolved Sea Sparrow missile design agent as well as provide in-service support, technical engineering and risk reduction support services.

Sea Sparrow has evolved from sea-based to ground-based air defense to counter the threats from aircraft, high and low velocity air threats and high divers.

The sole-source contract uses funding from the NATO Sea Sparrow consortium that consists of the Navy, Germany, Australia, Canada, the Netherlands, Norway, Turkey, Denmark, Greece, Japan and Spain.

Raytheon will perform work in various locations in the U.S. and overseas through December and the Navy obligated $13.7 million contract from the service’s fiscal 2016 procurement funding at the time of award.

In May, the company was awarded a contract to procure long lead materials for the production of the first block of the Sea Sparrow system.

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